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19 Mar 2015
GBP/USD fails to sustain above 1.49
FXStreet (Mumbai) - The GBP/USD extended recovery to 1.4904 levels after having bounced-off from the 10-DMA level earlier today, however, the weak Gilt yields in the UK made sure the pair fell back 1.4890 levels.
GBP/USD: Weak Gilt yields cap gains
The recovery from the low of 1.4818 to the current level of 1.4904 could have been more due to technical factors. Moreover, the UK-US benchmark bond yield spread continues to favor the USD. At the moment, the UK 10-year yield was down 4 basis points (bps) to 1.556%, while the 10-year Treasury yield was down 1 bps to 1.939%.
The pair could waver around 1.49 ahead of the weekly jobless claims data in the US. An upbeat initial jobless claims figure could push the pair back to the daily low of 1.4818.
GBP/USD Technical Levels
A drop below 1.4887 (10-DMA), could push the pair lower to 1.4718 levels. On the flip side, resistance is seen at 1.4903 (hourly 200-MA), above which gains could be extended to 1.4959 levels.
GBP/USD: Weak Gilt yields cap gains
The recovery from the low of 1.4818 to the current level of 1.4904 could have been more due to technical factors. Moreover, the UK-US benchmark bond yield spread continues to favor the USD. At the moment, the UK 10-year yield was down 4 basis points (bps) to 1.556%, while the 10-year Treasury yield was down 1 bps to 1.939%.
The pair could waver around 1.49 ahead of the weekly jobless claims data in the US. An upbeat initial jobless claims figure could push the pair back to the daily low of 1.4818.
GBP/USD Technical Levels
A drop below 1.4887 (10-DMA), could push the pair lower to 1.4718 levels. On the flip side, resistance is seen at 1.4903 (hourly 200-MA), above which gains could be extended to 1.4959 levels.