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31 Aug 2015
GBP/USD back above 1.5400
FXStreet (Mumbai) - The GBP bulls recovered a brief dip below 1.54 handle and trades muted in the European afternoon, as the risk-on flows have returned to the markets lending some support to the greenback amid thin-trading as UK markets remain closed on summer bank holiday.
GBP/USD remains exposed to downside risks
The GBP/USD pair trades flat at 1.5406, retreating from 1.5437 highs. The GPB/USD pair defends mild gains and trades muted as the risk aversion seen during Asia seems to have waned with the risk currency in the US dollar recovering lost ground, as traders continue to digest the recent updates from the weekend’s Jackson Hole gathering.
The focus over the weekend was on the Jackson Hole Symposium, with policymakers who spoke at the annual retreat making it clear they wanted to keep their options open, although the rate hike cravings appeared to have died down.
Meanwhile, gains in the cable are expected to remain capped amid lack of fresh fundamental news as the UK is closed for a national holiday.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5437 (Today’s High) above which gains could be extended to 1.5509 (Aug 27 High) levels. On the flip side, support is seen at 1.5395 (Today’s Low) below which it could extend losses to 1.5368 (Aug 27 Low) levels.
GBP/USD remains exposed to downside risks
The GBP/USD pair trades flat at 1.5406, retreating from 1.5437 highs. The GPB/USD pair defends mild gains and trades muted as the risk aversion seen during Asia seems to have waned with the risk currency in the US dollar recovering lost ground, as traders continue to digest the recent updates from the weekend’s Jackson Hole gathering.
The focus over the weekend was on the Jackson Hole Symposium, with policymakers who spoke at the annual retreat making it clear they wanted to keep their options open, although the rate hike cravings appeared to have died down.
Meanwhile, gains in the cable are expected to remain capped amid lack of fresh fundamental news as the UK is closed for a national holiday.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5437 (Today’s High) above which gains could be extended to 1.5509 (Aug 27 High) levels. On the flip side, support is seen at 1.5395 (Today’s Low) below which it could extend losses to 1.5368 (Aug 27 Low) levels.