1 May 2015
GBP/USD drops to 1.5283
FXStreet (Mumbai) - The GBP/USD pair extended the post-PMI drop to hit a session low of 1.5283 as the offers got more pronounced once the pair fell below 1.53 levels.
Pound weakens as Gilt yields fall
The slowdown in the manufacturing activity pushed the 10-year yield in the UK lower by 4.1 basis points to 1.794%. The weakness in the yields added to the bearish pressure on the GBP. Moreover, the sharp rise in German yields has also led to a buying in the EUR/GBP cross, which also weighs over the cable.
The offers could increase ahead in the day in case the US ISM manufacturing PMI prints higher than the consensus estimate of 52.00.
GBP/USD Technical Levels
The immediate resistance is located at 1.5342, above which gains could be extended to 1.54. On the flip side, a break below 1.5226 could push the pair down to 1.5155.
Pound weakens as Gilt yields fall
The slowdown in the manufacturing activity pushed the 10-year yield in the UK lower by 4.1 basis points to 1.794%. The weakness in the yields added to the bearish pressure on the GBP. Moreover, the sharp rise in German yields has also led to a buying in the EUR/GBP cross, which also weighs over the cable.
The offers could increase ahead in the day in case the US ISM manufacturing PMI prints higher than the consensus estimate of 52.00.
GBP/USD Technical Levels
The immediate resistance is located at 1.5342, above which gains could be extended to 1.54. On the flip side, a break below 1.5226 could push the pair down to 1.5155.