Back
19 Mar 2015
GBP/USD extends slide, drops to 5-DMA
FXStreet (Mumbai) - The stop driven gains in the GBP/USD pair seen in the previous session,continue to get erased. The pair dropped to its 5-DMA currently located at 1.4821.
USD makes a comeback
The US dollar is making a strong comeback partly driven by technical factors and partly by the realization that the June rate hike is still possible in the US. Moreover, the Fed chairwoman Yellen did say on Wednesday that the Fed does not rule out a rate hike post April.
Meanwhile, UK 10-year Gilt auction could also influence the GBP/USD pair in the European session. Investors should also watch out for further weakness in the UK Gilt yields. The USD could extend gains further on the strong weekly jobless claims data in the US.
GBP/USD Technical Levels
A drop below 1.4821 (5-DMA), could push the pair lower to 1.4722 levels. On the flip side, resistance is seen at 1.4850, above which gains could be extended to 1.4887 (10-DMA).
USD makes a comeback
The US dollar is making a strong comeback partly driven by technical factors and partly by the realization that the June rate hike is still possible in the US. Moreover, the Fed chairwoman Yellen did say on Wednesday that the Fed does not rule out a rate hike post April.
Meanwhile, UK 10-year Gilt auction could also influence the GBP/USD pair in the European session. Investors should also watch out for further weakness in the UK Gilt yields. The USD could extend gains further on the strong weekly jobless claims data in the US.
GBP/USD Technical Levels
A drop below 1.4821 (5-DMA), could push the pair lower to 1.4722 levels. On the flip side, resistance is seen at 1.4850, above which gains could be extended to 1.4887 (10-DMA).