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31 Mar 2015
GBP/USD recovers from session lows
FXStreet (Mumbai) - The GBP/USD recovered slightly from the session low of 1.4761 to trade at 1.4782 levels as the UK Gilt yields inched higher.
Pound supported by a rise in Gilt yields
The 10-year Gilt yield in the UK rose 1.9 basis points to 1.599%. Meanwhile, the 10-year Treasury yield in the US is trading moderately lower at 1.955%. The yield spread, at the moment, favors Pound, due to which the pair could have recovered from the session low.
However, it remains to be seen how long the benchmark yield spread favors the Pound, especially since the Treasury yields could rise faster as we head towards the non-farm payrolls release later this week. Meanwhile, the election uncertainty in the UK could drive the Gilt yields lower.
GBP/USD Technical Levels
The immediate resistance is seen at 1.4820, above which gains could be extended to 1.4878. On the flip side, support is seen at 1.4749 and 1.4687.
Pound supported by a rise in Gilt yields
The 10-year Gilt yield in the UK rose 1.9 basis points to 1.599%. Meanwhile, the 10-year Treasury yield in the US is trading moderately lower at 1.955%. The yield spread, at the moment, favors Pound, due to which the pair could have recovered from the session low.
However, it remains to be seen how long the benchmark yield spread favors the Pound, especially since the Treasury yields could rise faster as we head towards the non-farm payrolls release later this week. Meanwhile, the election uncertainty in the UK could drive the Gilt yields lower.
GBP/USD Technical Levels
The immediate resistance is seen at 1.4820, above which gains could be extended to 1.4878. On the flip side, support is seen at 1.4749 and 1.4687.