GBP/USD stuck between key levels

By FXStreet FXStreet (Mumbai) – The GBP/USD is struggling to extend gains above 200-DMA at 1.5331, while the downside is being capped around 1.5308 (50% of 1.5107-1.5509) ahead of the UK data.

Trades around 200-DMA

The spot now trades around 1.5331. The uptick in the Aussie after Friday’s China rate cut triggered a broad based USD weakness in Asia today. The cable rose to a intraday high of 1.5340, before trimming gains in early Europe.

The upward momentum is being capped as the USD is staging a recovery across the board. The cable could take cues from the CBI Trends Survey figure for October, which is likely to show total orders and export orders deteriorated further on account of weak overseas demand.

GBP/USD Technical Levels

The immediate resistance is located at 1.5355 (38.2% of 1.5107-1.5509), above which the pair could test offers at 1.5380 (50-DMA). A break above the same would open doors for 1.5414 (23.6% of 1.5107-1.5509). On the lower side, a failure to sustain above 1.5331 (200-DMA) could push the spot lower to 1.5306 (Friday’s low) and 1.5260 (61.8% of 1.5107-1.5509).
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Source:: FX Street