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17 Jul 2015
GBP/USD supported at 1.5603
FXStreet (Mumbai) - The British pound defends mild gains versus the US dollar in the mid-European session, keeping GBP/USD supported above 1.56 handle, as markets continue to digest Thursday’s hawkish comments from BOE Carney while eagerly awaiting Bundestag vote outcome and US macro updates for further cues.
German vote, US data in focus
The GBP/USD pair trades 0.13% higher at 1.5629, giving back more than half its rally to 1.5671 highs. The major keeps gains as the US dollar continues to underperform against its major competitors, consolidating previous heavy gains. The dollar index which measures the greenback’s strength against its major peers now trades 0.06% lower at 97.74.
Looking ahead, the main market mover today should come from the US, with CPI indices being released, followed by housing starts and the University of Michigan confidence gauge. Inflation month-on-month is expected to tick lower, but the core CPI should slightly improve. Both gauges are predicted to accelerate on a yearly basis.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5671(Today’s High) above which gains could be extended to 1.5700 levels. On the flip side, support is seen at 1.5603 (Today’s Low) below which it could extend losses to 1.5575 (July 15 Low) levels.
German vote, US data in focus
The GBP/USD pair trades 0.13% higher at 1.5629, giving back more than half its rally to 1.5671 highs. The major keeps gains as the US dollar continues to underperform against its major competitors, consolidating previous heavy gains. The dollar index which measures the greenback’s strength against its major peers now trades 0.06% lower at 97.74.
Looking ahead, the main market mover today should come from the US, with CPI indices being released, followed by housing starts and the University of Michigan confidence gauge. Inflation month-on-month is expected to tick lower, but the core CPI should slightly improve. Both gauges are predicted to accelerate on a yearly basis.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5671(Today’s High) above which gains could be extended to 1.5700 levels. On the flip side, support is seen at 1.5603 (Today’s Low) below which it could extend losses to 1.5575 (July 15 Low) levels.