17 Mar 2015
GBP/USD hits fresh session lows
FXStreet (Mumbai) - The GBP/USD continued to weaken as it hit a fresh session low of 1.4725 despite the weaker-than-expected US housing starts data. However, the pair has recovered slightly to 1.4758 on the back of a slight recovery in the UK Gilt yields.
GBP finds support from a recovery in Gilt yields
The 10-year Gilt yield in the UK has recovered from the low of 1.633% to trade 1.1 basis points higher at 1.688%. The sharp recovery in the benchmark yield helped the GBP/USD pair restrict losses at 1.4725 levels. Meanwhile, a 17% fall in the US housing starts did little to weaken the US dollar.
However, it remains to be seen if the recovery in the yields lasts long enough to ensure the GBP/USD remains resilient around the current level of 1.4758.
GBP/USD Technical Levels
The immediate support is seen at 1.4725, under which the pair could drop to 1.4698. On the flip side, resistance is seen at 1.4795 (5-DMA) and 1.4830 levels.
GBP finds support from a recovery in Gilt yields
The 10-year Gilt yield in the UK has recovered from the low of 1.633% to trade 1.1 basis points higher at 1.688%. The sharp recovery in the benchmark yield helped the GBP/USD pair restrict losses at 1.4725 levels. Meanwhile, a 17% fall in the US housing starts did little to weaken the US dollar.
However, it remains to be seen if the recovery in the yields lasts long enough to ensure the GBP/USD remains resilient around the current level of 1.4758.
GBP/USD Technical Levels
The immediate support is seen at 1.4725, under which the pair could drop to 1.4698. On the flip side, resistance is seen at 1.4795 (5-DMA) and 1.4830 levels.