GBP/USD: Fresh session lows after US data

By FXStreet FXStreet (Mumbai) – The offered tone around GBP/USD remained intact, pushing the spot to a fresh session low of 1.5391 after US data highlighted resilience in household spending despite turmoil in the markets.

Treasury yields support USD

The yield on the 2-year treasury note, which mimics rate hike expectations in the US, ticked more than one basis point higher to 0.742%. On similar lines the 10-year yield and 30-year yield rose around 1.5 basis points each. Consequently, the USD managed to stay buoyed even though the retail sales missed expectations.

The spot was already trading weak, heading into the weekend. Earlier today, the UK CPI report did trigger a minor rally to 1.5457 but the rally quickly faded away as investors stay cautious ahead of Thursday’s FOMC rate decision.

GBP/USD Technical Levels

The spot currently trades at 1.5397. A break below 1.5391 (daily low) could push the pair lower to its next support at 1.5372 (Sep 14 low). On the other side, resistance is seen at 1.5457 (daily high), followed by 1.5476 (Sep 10 high) and then 1.5517 (100-DMA).
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Source:: FX Street