FXStreet (Mumbai) – The GBP/USD pair strengthened as traders ignored the upbeat US data, although gains have been capped at 1.5749 (23.6% Fib R of 1.5169-1.5928).
Gains capped by Greek issue and US data
The spot failed to take out key Fib resistance at 1.5749 as the Grexit issue continued to weigh over the European currencies. The latest round of talks failed to end in a concrete deal and the issue would be considered again at Saturday/Sunday Eurogroup meeting.
Meanwhile, the sharp rise in the personal spending in the US could have also capped gains in the GBP/USD pair. It remains to be seen if the pair manages to take out the resistance or falls back to 1.57 levels amid increased probability of a September rate hike in the US and fears of Grexit.
GBP/USD Technical Levels
The pair currently trades at 1.5740. The immediate resistance is seen at 1.5749, above which gains could be extended to 1.5781 (hourly 100-MA). On the flip side, a break below 1.5723 (hourly 50-MA) could see the pair fall back to 1.57 levels.
(Market News Provided by FXstreet)