26 Aug 2015
GBP/USD drops further to 1.5580, US data eyed
FXStreet (Mumbai) - GBP/USD extended the drop below 1.5600 – key psychological support heading into the US session, on the back of strengthening greenback against its major peers as markets gear up for durable goods later in the session.
GBP/USD extends losses from 1.5610
The GBP/USD pair trades -0.65% lower at fresh weekly lows of 1.5582, unable to resist the key 1.56 barrier. The offered tone around the GBP/USD pair keeps growing bigger as traders favour the US currency ahead of the key US durable goods data which is expected to disappoint markets.
Moreover, the losses in GBP/USD were accelerated as stops triggered near 1.5610/30 region, drowning the cable nearly 140 points from daily highs of 1.5720.
Meanwhile, as there are no major UK data until Friday, traders will now focus on key US data to be released later this week including today’s durable goods figures. While New York Fed President William Dudley speech on local and regional economies will also be closely watched.
Durable goods orders are forecast to fall 0.4% in July, a steep worsening from the 3.4% rise booked a month before. Excluding transport, durables are seen rising 0.4%, a slowdown from the June 0.8% growth.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5778 (June 30 High) above which gains could be extended to 1.5800 levels. On the flip side, support is seen at 1.5560 (Aug 18 Low) below which it could extend losses to 1.5532 (Aug 12 Low) levels.
GBP/USD extends losses from 1.5610
The GBP/USD pair trades -0.65% lower at fresh weekly lows of 1.5582, unable to resist the key 1.56 barrier. The offered tone around the GBP/USD pair keeps growing bigger as traders favour the US currency ahead of the key US durable goods data which is expected to disappoint markets.
Moreover, the losses in GBP/USD were accelerated as stops triggered near 1.5610/30 region, drowning the cable nearly 140 points from daily highs of 1.5720.
Meanwhile, as there are no major UK data until Friday, traders will now focus on key US data to be released later this week including today’s durable goods figures. While New York Fed President William Dudley speech on local and regional economies will also be closely watched.
Durable goods orders are forecast to fall 0.4% in July, a steep worsening from the 3.4% rise booked a month before. Excluding transport, durables are seen rising 0.4%, a slowdown from the June 0.8% growth.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5778 (June 30 High) above which gains could be extended to 1.5800 levels. On the flip side, support is seen at 1.5560 (Aug 18 Low) below which it could extend losses to 1.5532 (Aug 12 Low) levels.