GBP/USD: Corrective rally approaching fib resistance

By FXStreet FXStreet (Mumbai) – The GBP/USD witnessed a correction in Asia and is approaching 1.5087 (61.8% of Apr-Jun rally) in early European session.

USD offered in Asia

The US dollar was offered across the board in Asia. The greenback witnessed a spike rally in the NY session on Friday after the non-farm payrolls report pretty much cemented Fed rate hike bets. However, the demand for the USD could make a comeback in Europe as the post-NFP moves mostly see an extension on Monday.

With no major data due, the cable is at the mercy of the overall market sentiment and the action in the equity markets.

GBP/USD Technical Levels

At 1.5078, the immediate resistance is located at 1.5087 (61.8% of Apr-Jun rally), above which the pair could target 1.5157 (hourly 50-MA) and 1.5163 (Sep 4 low). On the lower side, a failure to take out 1.5087 could push the pair back to 1.5025 (falling channel support) and 1.50 levels.
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Source:: FX Street