The slide in the GBP/USD
stalled, making way for a minor correction after the US reported a drop in its
factory orders in October, along with a fall in IBD/TIPP economic optimism
index.
Back above hourly 100-MA
The spot is now
back above its hourly 100-MA at 1.5366 after having dipped for a brief moment to
a low of 1.5359. The US factory orders contracted 1% as expected, thereby
offering no surprise to the markets. However, the cable has responded by ticking
slightly higher to 1.5380.
Next on tap is ECB Draghi’s speech due later
today, which may trigger volatility in the EUR/GBP cross and thus influence the
GBP/USD pair.
GBP/USD Technical Levels
At 1.5380,
the immediate resistance is seen at 1.54, followed by a major hurdle at 1.5408
(38.2% of Apr-Jun rally). On the other side, hourly 200-MA and 38.2% of Oct
low-high at 1.5355 could offer strong support, under which the pair could test
1.53 handle.
