GBP/USD: Bears take a breather, consolidates around 1.5510

FXStreet (Mumbai) - The GBP bears are taking a breather after pushing the GBP/USD spot lower by more than 100-pips in the previous session on the back of weak UK retail sales data and upbeat US weekly jobless claims data.

Corrective move ahead?

The UK economic calendar does not offer a major data release today. Consequently, the investors are likely to wait for the US preliminary manufacturing data and New Home sales data due for release later today.

In the meantime, we may witness a corrective move in the GBP/USD pair after the sharp slump in the previous session, especially if the weak Eurozone PMIs drive the EUR/GBP pair lower, thereby lending support to cable.

GBP/USD Technical Levels

The immediate resistance is located at 1.5549 (50% of June rally) ahead of the major hurdle at 1.5638 (38.2% of June rally). On the other hand, support is seen at 1.55 handle and 1.5459 (61.8% of June rally).

EUR/USD consolidates below 1.1000

The shared currency shaved-off previous gains and trades mildly in the red versus the US dollar in the early European trades, with EUR/USD facing rejection just shy of 1.10 barrier. The major edged lower, correcting heavy gains seen on Thursday after markets continued to cheer Greek vote while ignoring solid jobs data from the US.
Read more Previous

EUR/USD forecast: waiting for PMIs – Commerzbank and OCBC Bank

The single currency has returned to sub-1.10 levels vs. the greenback on Friday ahead of flash PMIs in the euro area....
Read more Next