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GBP/USD back above 1.55, will it sustain?
FXStreet (Mumbai) – The GBP/USD pair has finally made it back above 1.55 with a little help from the weekend profit taking, but the spot, currently around 1.5510, faces a wall of resistance in 1.5510-1.5525 area.
Profit taking could support GBP
The disappointing US new home sales figure overshadows the slight recovery in the manufacturing activity from the 20-month low in July reported earlier today. Consequently, the spot has largely stayed ignorant to the US data. However, profit booking on the GBP shorts ahead of the weekend seems to have pushed the GBP/USD above 1.55.
Still, the uptick lacks momentum as the focus now shifts to next week’s preliminary UK and US GDP Q2 readings and US Fed policy statement. The pair may have a hard time sustaining above 1.55 if the investors chose to carry GBP shorts over the weekend; especially since the US data has not had any effect on the poor.
GBP/USD Technical Levels
The immediate resistance is seen on the hourly chart at 1.5525, followed by a major hurdle at 1.5549 (50% Fib of June rally). On the other hand, a break below 1.55 handle could see the spot revisit its daily low at 1.5467.
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GBP/USD back above 1.55, will it sustain?
Source: FXStreet
