FXStreet (Mumbai) – The GBP/USD pair drops further into losses in the mid-European session, extending its bearish momentum into a second day on Tuesday.
GBP/USD trades below all major DMAs
The GBP/USD pair trades -0.26% lower at fresh four-day lows of 1.4840, heading for a test of pre-Christmas lows posted at 1.4815 levels. The cable dives deeper in the red as the US dollar wiped-out losses and swung back into gains against its major competitors amid improving appetite for the riskier currency, the USD. The US dollar index gains 0.07% and regains 98 barrier and beyond.
There are no GBP fundamentals today, and hence markets favour the US currency against the pound expectant of the US goods trade balance, S&P/CS Composite-20 HPI y/y and CB Consumer Confidence data due later in the NY session. On Wednesday, the only relevant data for the GBP are Nationwide’s house prices indices for December.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4903/11 (5-DMA /1h 200-SMA), above which 1.4935 (Dec 28 High) would be tested. On the flip side, support is seen at 1.4815 (Dec 23 Low) below which it could extend losses to 1.4780 (April levels).
(Market News Provided by FXstreet)