GBP/USD: M&A deal could have lent support

FXStreet (Mumbai) - The GBP/USD pair has shot higher amid a thin UK economic calendar on broad based USD sell-off and possible support from Royal Dutch Shell and BG group deal.

GBP/USD: Rises above 1.4935

The pair trades a few pips above 1.4935, a level which has acted as a strong resistance since the last few days. The major part of the up move from 1.4817 to 1.4940 could be attributed the USD sellers. However, the deal M&A deal could have also lent a helping hand to the pair.

Royal Dutch Shell said it has agreed to buy oil and gas exploration firm BG Group in a deal that values the business at GBP 47 billion. The deal could be one of the biggest of 2015 and could produce a company with a value of more than GBP 200 billion.

GBP/USD Technical Levels

The immediate resistance is seen at 1.4950, above which the pair could rise to 1.4982. On the flip side, a break below 1.49 could drive the pair lower to 1.4849.

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