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17 Jul 2015
GBP/USD drops below 1.56
FXStreet (Mumbai) - The GBP/USD pair has extended losses to trade around 1.5590 after the German Bundestag approved new Greek bailout negotiations helped the EUR/GBP recover losses.
Cross driven weakness
The drop below 1.56 is largely due to the recovery seen in the EUR/GBP cross from the low of 0.6943 to trade at 0.6980. The uptick in the cross was driven by the Bundestag’s approval of start of new debt negotiations for a new Greek bailout.
Ahead in the day, the spot could extend losses in case the data in the US shows CPI ticked higher as expected in June. The investors shall also watch out for housing reports and Fed vice chair Fischer speech.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5607 (23.6% Fib R of Apr-Jun rally) and 1.5638 (38.2% Fib R of June rally). On the flip side, support is seen at 1.5560 (50-DMA) and 1.54 handle.
Cross driven weakness
The drop below 1.56 is largely due to the recovery seen in the EUR/GBP cross from the low of 0.6943 to trade at 0.6980. The uptick in the cross was driven by the Bundestag’s approval of start of new debt negotiations for a new Greek bailout.
Ahead in the day, the spot could extend losses in case the data in the US shows CPI ticked higher as expected in June. The investors shall also watch out for housing reports and Fed vice chair Fischer speech.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5607 (23.6% Fib R of Apr-Jun rally) and 1.5638 (38.2% Fib R of June rally). On the flip side, support is seen at 1.5560 (50-DMA) and 1.54 handle.