| The above graph is line chart of GBP/USD from 1st Jan 2015 till date. The British Pound ended to eight-month peaks against the U.S dollar on Friday as investors pushed back expectations for higher U.S rate hike and concerns over the Greek debt crisis boosted safe haven demand for sterling. Demand for the sterling was boosted as a deadlock between Athens and its international lenders continued ahead of the approaching deadline for Greeces repayments to the IMF at the end of the month. Additionally, the dollar index came under pressure after the Fed lowered both its U.S growth forecast and its interest-rate projections on Wednesday, prompting investors to push back expectations on the timing of an initial rate hike. As pre economic released last week, UK CPI numbers printed in line with expectation at 0.1% and Retail sales expanded by 0.2% in the month of May, there was growth in predominantly food stores, other non-food stores, household goods stores and petrol stations.Technically speaking, the pair extended previous week gains. Daily and weekly oscillators are heading north. Initial bias for the pair is positive and if prices sustain above 1.5900 levels, it would further rally towards next resistance of 161 in the near term. On the down side there is a minor support at 1.5790 and a convincing breach below this level may drop the pair down to 1.5638. |
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
