FXStreet (Mumbai) – Having bottomed just ahead of 1.49 handle in early Asia, the GBP/USD pair extends its struggle to the upside as we progress towards the European open.

GBP/USD hovers above 5-DMA at 1.4914

The GBP/USD pair trades almost unchanged at 1.4920, trying another attempt to 1.4935 -daily highs. The cable is seen treading water in a narrow range amid lack of fresh economic news as the UK markets remain closed on account of Boxing Day holiday.

While any attempt to the upside in GBP/USD is likely to be sold-off as the pound remains pressured on the back of fading BOE rate hike bets in H1 2016 and also on looming Brexit concerns.

Markets now shift their attention towards a slew of macro updates from the US due tomorrow for fresh incentives on the pair. Tuesday sees a release of US goods trade balance, S&P/CS Composite-20 HPI y/y and CB Consumer Confidence data.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4942 (1h 200-SMA), above which 1.5004 (Dec 17 High/ 20-DMA) would be tested. On the flip side, support is seen at 1.4909 (daily low) below which it could extend losses to 1.4888/83 (1h 100 & 50-SMA).

Having bottomed just ahead of 1.49 handle in early Asia, the GBP/USD pair extends its struggle to the upside as we progress towards the European open.

(Market News Provided by FXstreet)

By FXOpen