Friday, December 19, 2014

$GBP/USD finds support ahead of 1.5600

$GBP/USD retreated further and hit fresh daily lows ahead of the American opening amid broad dollar gains and despite supportive UK data.

After hitting fresh 2014 lows on the back of FOMC statement Wednesday, $GBP/USD staged a an upward correction but the upside was capped by the 200-hour SMA around 1.5680, putting Cable back on the defensive.

$GBP/USD has fallen to a low of 1.5616 before bouncing to the 1.5630 area, where it is currently trading, recording a 0.22% loss on the day. Immediate resistance is seen at 1.5680 (200-hour SMA), while the 1.5600 level should offer support on dips.