8 May 2015
GBP/USD retraces to 1.5450 post UK data
FXStreet (Mumbai) - The British pound trimmed gains and retraced from fresh three-month highs against its American counterpart in the European session, driving GBP/USD slightly away from 1.55 handle, after UK’s trade deficit came in worse than expected pulling the GBP lower. However, the cable remains lifted cheering Tories victory to be announced shortly.
GBP/USD drops from 1.5480
The GBP/USD pair trades 1.38% at 1.5456, retreating from 1.5480 levels post the data releases. The cable remains elevated, although shed some gains after weak UK trade data weighed on the pound.
The UK trade balance came in worse than expected in March at £2.8 billion but narrower than February's upwardly revised deficit of £3.3 billion following a rise in the export of manufactured goods.
Meanwhile, GBP/USD remains heavily bid backed by expectations of Conservatives Party winning UK elections by majority. The early exit poll result showed that Cameron’s Conservatives Party is set to win UK’s election by majority, which would likely see a referendum held on the UK's exit from the EU.
If the exit poll is correct, then the Conservatives and Liberal Democrats seats put together would give an exact simple majority of 326 out of the total 650.
Meanwhile, markets closely await the UK’s elections final results which will confirm if the Conservatives Party takes a sweeping victory.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5539 (Feb 25 High) above which gains could be extended to 1.5553 (Feb 26 High) levels. On the flip side, support is seen at 1.5400 below which it could extend losses to 1.5383 (Today’s Low) levels.
GBP/USD drops from 1.5480
The GBP/USD pair trades 1.38% at 1.5456, retreating from 1.5480 levels post the data releases. The cable remains elevated, although shed some gains after weak UK trade data weighed on the pound.
The UK trade balance came in worse than expected in March at £2.8 billion but narrower than February's upwardly revised deficit of £3.3 billion following a rise in the export of manufactured goods.
Meanwhile, GBP/USD remains heavily bid backed by expectations of Conservatives Party winning UK elections by majority. The early exit poll result showed that Cameron’s Conservatives Party is set to win UK’s election by majority, which would likely see a referendum held on the UK's exit from the EU.
If the exit poll is correct, then the Conservatives and Liberal Democrats seats put together would give an exact simple majority of 326 out of the total 650.
Meanwhile, markets closely await the UK’s elections final results which will confirm if the Conservatives Party takes a sweeping victory.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5539 (Feb 25 High) above which gains could be extended to 1.5553 (Feb 26 High) levels. On the flip side, support is seen at 1.5400 below which it could extend losses to 1.5383 (Today’s Low) levels.