GBP/USD down in the Asian session

FXStreet (Mumbai) - The GBP/USD pair extended weakness in the Asian session after having failed to rise above 50-DMA located at 1.5273 in the previous session.

Cross demand subsides

The British Pound was a major beneficiary of the Greek-led uncertainty in the previous sessions; rising to a fresh seven-year high against the EUR. The cross demand helped GBP/USD pair clock a high of 1.5298 levels. However, the pair eventually dropped as the cross demand faded away even though the Euro group failed to produce a joint statement of the meeting. Moreover, the negotiations will now move to next Monday, when another meeting will be held in Brussels.

Meanwhile, the Bank of England (BOE) Quarterly Inflation Report (QIR) is due for release later today. The BOE is widely expected to revise its inflation forecast lower, while sounding upbeat on the positive impact of fall in oil prices.

GBP/USD Technical Levels

At the moment, the pair trades 0.09% lower at 1.5222. The immediate support is located at 1.5206(10-DMA) and hourly 100-SMA at 1.5145 levels. On the flip side, the resistance is seen at 1.5250 and 1.53 levels.

GBP a sell on recovery in today’s QIR – AceTrader

The AceTrader Team comments on today’s inflation report, noting that the impact of lower oil and low inflation should be supportive for UK, unlike other economies, and further recommends selling GBP on any recovery into today’s release.
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GBP/JPY struggles above 183, BOE inflation report eyed

GBP/JPY pulled away from fresh five-week highs and dropped during the late-Asian session, largely on yen strength as traders now await critical Bank of England’s (BOE) inflation report due later in the day.
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