25 Feb 2015
GBP/USD eases off session high, steadies around 1.55
FXStreet (Mumbai) - The GBP/USD backed-off from the session high of 1.5539 to trade at 1.5506 levels as the 10-year Gilt yield in the UK fell sharply, outdoing the fall seen in the US 10-year Treasury yield today. The pair recovered from the low of 1.5503 earlier today to rise above key technical levels.
GBP/USD – Stuck at Technical resistance
The pair ran into multiple technical resistance located at 1.5540 (Dec. 8 low) - 1.5547 (Dec. 18 low), after it rose through the 100-DMA at 1.5470 and the 23.6% Fib retracement level (of 1.7190-1.4949) at 1.5477 earlier today.
Meanwhile, the Pound also faced pressure from the decline in the Gilt yields. The 10-year Gilt yield fell 5.6 basis points to 1.706%. Meanwhile, the 10-year yield in the US fell 2.6 basis points to 1.96%. The relative weakness in the benchmark bond yield in the UK could have capped gains in the British Pound. However, the pair could remain supported at 1.55 on Bank of England governor Carney’s comments that an interest rate hike is more likely to be the next move.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5540, above which the pair could rise to 1.56 levels. On the flip side, a break below 1.5477 could push the pair down to 1.5437 (5-DMA).
GBP/USD – Stuck at Technical resistance
The pair ran into multiple technical resistance located at 1.5540 (Dec. 8 low) - 1.5547 (Dec. 18 low), after it rose through the 100-DMA at 1.5470 and the 23.6% Fib retracement level (of 1.7190-1.4949) at 1.5477 earlier today.
Meanwhile, the Pound also faced pressure from the decline in the Gilt yields. The 10-year Gilt yield fell 5.6 basis points to 1.706%. Meanwhile, the 10-year yield in the US fell 2.6 basis points to 1.96%. The relative weakness in the benchmark bond yield in the UK could have capped gains in the British Pound. However, the pair could remain supported at 1.55 on Bank of England governor Carney’s comments that an interest rate hike is more likely to be the next move.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5540, above which the pair could rise to 1.56 levels. On the flip side, a break below 1.5477 could push the pair down to 1.5437 (5-DMA).