8 Jul 2015
GBP/USD threatens to drop below 1.54
FXStreet (Mumbai) - The GBP/USD pair fell to a fresh low of 1.5400 after being rejected at a high of 1.5467 earlier today.
GBP/USD dips ahead of UK budget
The pair is trading below 1.5408 (38.2% Fib R of Apr-June rally), threatening to fall below 1.54 handle as markets believe more fiscal consolidation could delay BOE’s plans of a rate hike. The UK government is widely expected to announce more measures aimed at fiscal consolidation.
Consequently, the cable has remained weak despite the uptick seen in the EUR/USD pair. Ahead in the day, the pair could be influenced by the UK budget statement and the Fed minutes.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5460, above which the pair could target 1.55 handle. On the flip side, a break below 1.5400 could see the pair drop to 1.5348 (76.4% Fib of June rally).
GBP/USD dips ahead of UK budget
The pair is trading below 1.5408 (38.2% Fib R of Apr-June rally), threatening to fall below 1.54 handle as markets believe more fiscal consolidation could delay BOE’s plans of a rate hike. The UK government is widely expected to announce more measures aimed at fiscal consolidation.
Consequently, the cable has remained weak despite the uptick seen in the EUR/USD pair. Ahead in the day, the pair could be influenced by the UK budget statement and the Fed minutes.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5460, above which the pair could target 1.55 handle. On the flip side, a break below 1.5400 could see the pair drop to 1.5348 (76.4% Fib of June rally).