FXStreet (Mumbai) – The upbeat economic data released in the US has had little impact on the GBP/USD, which trades near 1.49 levels.
Profit taking on USD longs ahead of year end
The overcrowded USD long trade finds not takers ahead of the year end despite upbeat data. The US household spending rose 0.3% after adjusting for inflation, the most in three months, while incomes climbed 0.3%, beating the forecast. Meanwhile, the headline durable goods orders stalled as opposed to the expectation of month-on-month contraction.
However, profit taking on the USD longs is keeping the greenback on the back foot; especially against the oversold GBP. The cable suffered losses for seven straight days, before turning higher today.
GBP/USD Technical Levels
At 1.4895, the immediate resistance is seen at 1.4950 (Dec 18 high), above which the pair could target 1.50-1.5027 (Nov 6 low). On the other hand, a break below the support at 1.4886 (hourly 100-MA) would open doors for a re-test of 1.4864 (hourly 50-MA).
(Market News Provided by FXstreet)