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13 May 2015
GBP/USD erases gains
FXStreet (Mumbai) - The GBP/USD pair ran into offers above 1.5680 in the early European session, resulting in minor losses ahead of the Bank of England’s (BOE) Quarterly inflation report (QIR).
GBP/USD hit a low of 1.5658
The pair dropped to a low of 1.5658, before recovering slightly to trade at 1.5670. The BOE’s infaltion report is widely expected to revise growth and inflation forecasts higher. Consequently, the investors bought Pounds in a run up to inflation report, which resulted in the pair rallying from a low of 1.5390 on Monday to a high of 1.5709 in the previous session. Part of the move was also driven by the broad based USD weakness.
Investors will also watch out for the UK employment and wage data due for release ahead of the inflation report.
GBP/USD Technical Levels
The immediate resistance is located at 1.5709, above which the pair could rise to 1.5790-1.58. On the flip side, a break below 1.5660, could drive the pair lower to 1.56.
GBP/USD hit a low of 1.5658
The pair dropped to a low of 1.5658, before recovering slightly to trade at 1.5670. The BOE’s infaltion report is widely expected to revise growth and inflation forecasts higher. Consequently, the investors bought Pounds in a run up to inflation report, which resulted in the pair rallying from a low of 1.5390 on Monday to a high of 1.5709 in the previous session. Part of the move was also driven by the broad based USD weakness.
Investors will also watch out for the UK employment and wage data due for release ahead of the inflation report.
GBP/USD Technical Levels
The immediate resistance is located at 1.5709, above which the pair could rise to 1.5790-1.58. On the flip side, a break below 1.5660, could drive the pair lower to 1.56.