GBP/USD re-attempts 100-DMA, gains capped by USD rebound?

By FXStreet FXStreet (Mumbai) – The GBP/USD pair is trading firmly above 5-DMA and heads towards daily highs, ignoring a solid rebound in the US dollar against its major peers.

GBP/USD rises from 1.5450 levels

The GBP/USD pair trades 0.17% higher at 1.5467, having found good support near 5-DMA located at 1.5454. The major extends its choppy-trend into the mid-European trades, reversing brief downward spike to 1.5450 levels and now looks to revisit daily highs recorded at 1.5481 in last hours.

The pound continues to ride higher versus the US dollar on Monday, as markets continue to cheer last week’s labour data from the UK ahead of Tuesday’s BOE Governor Carney speech.

However, further upmoves remain capped amid broad based US dollar rebound as risk-sentiment returned with higher European indices. The USD index gains 0.17% to 94.93.

Amid a data-light trading calendar, traders await today’s Fed speakers, including speeches from Lael Brainard and Jeffrey Lacker, with both currently voting members this year.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5481/1.5487 (Today’s High & Oct 16 High) above which gains could be extended to 1.5500 (psychological levels). On the flip side, support is seen at 1.5428/29 (Today’s Low & Daily S1) below which it …read more

Source:: FX Street