25 Aug 2015
GBP/USD tests 1.5800, risk-on sentiment re-emerges
FXStreet (Mumbai) - The British currency reversed losses and remains better bid versus the US dollar in the European morning, now pushing GBP/USD to fresh session highs just shy of 1.58 barrier, as the greenback halted its recovery and shed some gains as risk-appetite seems to have returned with oil price rebound and higher European equities.
GBP/USD rises from 1.5750 region
The GBP/USD pair trades 0.12% higher at fresh session highs at 1.5798, on its way to post fresh two-month highs above 1.5800. The cable extends its gradual ascent in the European session, after taking a breather in its upside in the Asian trades, as risk-on trades returns to the markets.
Markets cheered sharp rebound seen in the oil prices which brought respite to the UK’s mining and energy sector, boosting the GBP bulls higher. While, stronger European indices also boosted the risk-on sentiment, thereby pushing higher yielding currencies such as GBP/USD higher.
Meanwhile, the pair is likely to track USD moves in the day ahead with a series key US data to have major impact on the cable.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5778 (June 30 High) above which gains could be extended to 1.5800 levels. On the flip side, support is seen at 1.5631 (Today’s Low) below which it could extend losses to 1.5604 (Aug 20 Low) levels.
GBP/USD rises from 1.5750 region
The GBP/USD pair trades 0.12% higher at fresh session highs at 1.5798, on its way to post fresh two-month highs above 1.5800. The cable extends its gradual ascent in the European session, after taking a breather in its upside in the Asian trades, as risk-on trades returns to the markets.
Markets cheered sharp rebound seen in the oil prices which brought respite to the UK’s mining and energy sector, boosting the GBP bulls higher. While, stronger European indices also boosted the risk-on sentiment, thereby pushing higher yielding currencies such as GBP/USD higher.
Meanwhile, the pair is likely to track USD moves in the day ahead with a series key US data to have major impact on the cable.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5778 (June 30 High) above which gains could be extended to 1.5800 levels. On the flip side, support is seen at 1.5631 (Today’s Low) below which it could extend losses to 1.5604 (Aug 20 Low) levels.