FXStreet (Mumbai) – The increasing offered tone on the US currency on the back of falling treasury yields, drives GBP/USD through the roof beyond 1.56 handle.
GBP/USD bolstered by weaker USD
The GBP/USD pair trades 0.33% higher 1.5641, quickly fading a spike to fresh 3-week highs posted at 1.5658. The cable keeps pushing higher in the mid-Europeans trades, as the US dollar ran through fresh sellers after the Fed’s decision to push back rate hike continues to negatively impact the market sentiment.
Moreover, the downward spiral seen in the US treasury yields also keeps the US dollar undermined against the pound. The 2-yr and 10-yr yields on the US treasury notes extend declines, now trading -4.60% and -2.30% lower respectively, on the day.
Meanwhile, the cable is expected to track the USD moves amid a data-quiet trading calendar for the rest of the day.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5692 (Jul 29 High) above which gains could be extended to 1.5725 (Aug 21 High) levels. On the flip side, support is seen at 1.5600 below which it could extend losses to 1.5577 (Today’s Low) levels.
(Market News Provided by FXstreet)