GBP/USD dips briefly below 1.5600

FXStreet (Córdoba) - GBP/USD failed to sustain intraday gains and has already retraced its early rise after being rejected by the 10-day SMA.

After hitting a daily high of 1.5664, Cable turned lower and slid to fresh daily lows coincidentally with a dollar recovery across the board. GBP/USD has lost around 70 pips over the last hours and briefly fell below the 1.56 mark to hit a low of 1.5597 so far. At time of writing, GBP/USD is trading at 1.5607, 0.10% below its opening price.

Not much data expected for today, with only US existing home sales scheduled, while a more lively day datawise is expected tomorrow, including Q3 UK GDP. However, liquidity remain thin ahead of the Christmas holiday but year-end positioning shouldn’t be ruled out.

GBP/USD technical levels


As for short-term technical levels, next supports are seen at 1.5597 (daily low) and 1.5539 (2014 low Dec 17) ahead of 1.5507 (Sep 2 2013 low). On the flip side, resistances could be found at 1.5665/67 (daily high/10-day SMA) and 1.5700 (psychological level).

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