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29 Jul 2015
GBP/USD: pushes through key fib resistance, will it sustain?
FXStreet (Mumbai) - The bulls have finally managed to push the GBP/USD spot through 1.5639 (38.2% Fib R of June rally), although it remains to be seen if it manages to sustain above the same till NY closing.
Will it sustain above Fib level
The spot managed to rise above the said level on few occasions since July 1, but failed to witness a daily close. Consequently, the GBP bulls may have a hard time extending the gains, especially if the US new home sales data surprises on the positive side, while the Fed ignores the overseas turbulence in its policy statement.
The Fed is widely expected to reiterate that rate hike decision is data dependent, while expressing concerns regarding the situation in China.
GBP/USD Technical Levels
The spot currently trades at 1.5640. The gains could be extended to 1.5670 (July 23 high). On the other hand, failure to sustain above 1.5639 (38.2% Fib R of June rally) could see the spot re-test 1.56 handle.
Will it sustain above Fib level
The spot managed to rise above the said level on few occasions since July 1, but failed to witness a daily close. Consequently, the GBP bulls may have a hard time extending the gains, especially if the US new home sales data surprises on the positive side, while the Fed ignores the overseas turbulence in its policy statement.
The Fed is widely expected to reiterate that rate hike decision is data dependent, while expressing concerns regarding the situation in China.
GBP/USD Technical Levels
The spot currently trades at 1.5640. The gains could be extended to 1.5670 (July 23 high). On the other hand, failure to sustain above 1.5639 (38.2% Fib R of June rally) could see the spot re-test 1.56 handle.