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25 Feb 2015
GBP/USD to end up in losses?
FXStreet (Mumbai) - The GBP/USD pair continues to fall, threatening to erase entire gains as the US dollar makes a strong comeback ahead of the Fed Chairwoman Janet Yellen’s testimony to the financial services committee. The pair has declined from a high of 1.5539 seen earlier today to trade at 1.5472; up just 0.14% for the day.
GBP/USD: Drops below key Fibo level
The pair has dropped below the 23.6% retracement level of the down trend from 1.7190 to 1.4949 located at 1.5477. Furthermore, the pair is also threatening to break below the 100-DMA located at 11.5470.
The British Pound could have weakened as the rally lacked support from the Gilt yields. The 10-year yield in the UK currently trades 4.1 basis points lower at 1.721%, while its US counterpart has erased losses to trade largely unchanged at 1.983%. Further losses could be seen if the yield spread continues to move in favor of the US dollar.
GBP/JPY Technical Levels
The immediate support is seen at 5-DMA at 1.5430 (5-DMA) and 1.5410 (10-DMA), under which losses could be extended to 1.5350 levels. On the other hand, rise above 1.55 could see the pair re-test the daily high of 1.5539.
GBP/USD: Drops below key Fibo level
The pair has dropped below the 23.6% retracement level of the down trend from 1.7190 to 1.4949 located at 1.5477. Furthermore, the pair is also threatening to break below the 100-DMA located at 11.5470.
The British Pound could have weakened as the rally lacked support from the Gilt yields. The 10-year yield in the UK currently trades 4.1 basis points lower at 1.721%, while its US counterpart has erased losses to trade largely unchanged at 1.983%. Further losses could be seen if the yield spread continues to move in favor of the US dollar.
GBP/JPY Technical Levels
The immediate support is seen at 5-DMA at 1.5430 (5-DMA) and 1.5410 (10-DMA), under which losses could be extended to 1.5350 levels. On the other hand, rise above 1.55 could see the pair re-test the daily high of 1.5539.