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23 Feb 2015
GBP/USD rises above 1.54
FXStreet (Mumbai) - The GBP/USD pair recovered its losses to trade above 1.54 levels even though the official data in the UK showed retail sales almost stalled in January. The rise in Gilt yields coupled with a fall in the US Treasury yields helped the pair recover its losses.
Pound gains as Gilt yields rise
The British Pound managed to recover losses as the Gilt yields in the UK strengthened. The 10-year Gilt yield clocked a high of 1.831%, before easing to 1.787%; up 2 basis points. Meanwhile, its US counterpart is down 4.4 basis points at 2.089%. The favorable yield spread, pushed the GBP/USD pair higher despite a weaker-than-expected data. The UK CBI Distributive Trades Survey for February came-in at 1, missing the estimated 34, and sharply lower than January’s 39.
The pair at 1.5405; up 0.07%; is trading above its hourly 50-MA and 10-MA seen at 1.5396 and 1.5397 respectively.
GBP/USD Technical Levels
The pair has an immediate resistance at 1.5419, above which gains could be extended to 1.5472 levels. On the flip side, a break below 1.5396 could push the pair down to 1.5376 levels.
Pound gains as Gilt yields rise
The British Pound managed to recover losses as the Gilt yields in the UK strengthened. The 10-year Gilt yield clocked a high of 1.831%, before easing to 1.787%; up 2 basis points. Meanwhile, its US counterpart is down 4.4 basis points at 2.089%. The favorable yield spread, pushed the GBP/USD pair higher despite a weaker-than-expected data. The UK CBI Distributive Trades Survey for February came-in at 1, missing the estimated 34, and sharply lower than January’s 39.
The pair at 1.5405; up 0.07%; is trading above its hourly 50-MA and 10-MA seen at 1.5396 and 1.5397 respectively.
GBP/USD Technical Levels
The pair has an immediate resistance at 1.5419, above which gains could be extended to 1.5472 levels. On the flip side, a break below 1.5396 could push the pair down to 1.5376 levels.