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19 Mar 2015
Sell-off in GBP/USD halts at 5-DMA
FXStreet (Mumbai) - The GBP/USD pair appears to have stabilized at 1.4851, after the sell-off was halted around the 5-DMA located at 1.4821 levels.
GBP/USD: Further recovery ahead?
The cable could recover further, especially if the benchmark US-UK bond yield spread tilts in favor of the British Pound. At the moment, the UK 10-year yield is down 2.4 basis points (bps) to 1.571%, while the 10-year Treasury yield has recovered losses to trade largely unchanged at 1.949%. Thus, the recovery seen in the pair may not last long enough as the bond yield spread currently favors the US dollar.
Meanwhile, a weaker-than-expected US weekly jobless data in the Us later today could help the cable recover losses.
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 1.4887 (10-DMA), above which gains could be extended to 1.4959 levels.
GBP/USD: Further recovery ahead?
The cable could recover further, especially if the benchmark US-UK bond yield spread tilts in favor of the British Pound. At the moment, the UK 10-year yield is down 2.4 basis points (bps) to 1.571%, while the 10-year Treasury yield has recovered losses to trade largely unchanged at 1.949%. Thus, the recovery seen in the pair may not last long enough as the bond yield spread currently favors the US dollar.
Meanwhile, a weaker-than-expected US weekly jobless data in the Us later today could help the cable recover losses.
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 1.4887 (10-DMA), above which gains could be extended to 1.4959 levels.