2 Jul 2015
GBP/USD revisits 1.5620 after US factory orders data
FXStreet (Mumbai) - The GBP/USD pair rose to trade near 1.5620 after the USD bears caught a second wind after the factory orders data in the US contracted more than expected.
Gains capped at key Fib resistance
The pair failed to take out the resistance at 1.5638, which is the 38.2% Fib R of June rally. A minor recovery in the USD pushed the pair back to 1.56-1.5610 band, before the pair rose back to 1.5620 after the official data in the US showed factory orders in June fell 1%, beating the estimated fall of 0.5%.
Moreover, the rate hike bets dropped due to the disappointing data sets released today in the US. Fed funds futures show there is a 27% chance the central bank will increase its benchmark rate from near zero in September, down from 35% Wednesday.
It remains to be seen if the pair manages to take out the resistance at 1.5638 ahead of the early weekend in the US on account of a trading holiday on Friday.
GBP/USD Technical Levels
The immediate resistance is located at 1.5638, above which the pair could target 1.5688 (hourly 10-MA). On the flip side, a break below 1.5600 could see the pair re-test the daily low of 1.5565.
Gains capped at key Fib resistance
The pair failed to take out the resistance at 1.5638, which is the 38.2% Fib R of June rally. A minor recovery in the USD pushed the pair back to 1.56-1.5610 band, before the pair rose back to 1.5620 after the official data in the US showed factory orders in June fell 1%, beating the estimated fall of 0.5%.
Moreover, the rate hike bets dropped due to the disappointing data sets released today in the US. Fed funds futures show there is a 27% chance the central bank will increase its benchmark rate from near zero in September, down from 35% Wednesday.
It remains to be seen if the pair manages to take out the resistance at 1.5638 ahead of the early weekend in the US on account of a trading holiday on Friday.
GBP/USD Technical Levels
The immediate resistance is located at 1.5638, above which the pair could target 1.5688 (hourly 10-MA). On the flip side, a break below 1.5600 could see the pair re-test the daily low of 1.5565.