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GBP/USD turns negative, drops below 50-DMA & 100-DMA

FXStreet (Mumbai) - The buying interest in the USD spiked as the European equity majors recovered losses, pushing the GBP/USD below 50-DMA and 100-DMA located at 1.5521 and 1.5527 respectively.

USD on the rise

The Greenback is being favoured across the board after the treasury yields ticked higher and the European stocks recovered losses, thereby pushing the US index futures into the positive territory. The S&P 500 was down about 0.2% in early Europe, before recovering back to trade 0.2% higher on the day.

At the moment, the spot is trading around 1.5515 levels. Ahead in the day, the cable is at the mercy of the market’s overall appetite for the US dollars.

GBP/USD Technical Levels

The immediate resistance is seen at 1.5521 (50-DMA) and 1.5527 (100-DMA), followed by a major hurdle at 1.5568 (daily high). On the other side, support is seen at 1.55 and 1.5458 (Aug 10 low).

EUR/USD surrenders gains, back below 1.1300

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USD: FOMC negativity fading away – MUFG

Lee Hardman, Currency Analyst at MUFG, notes that the initial negative FOMC reaction for the USD has turned out to be short-lived and the greenback has strengthened modestly in the Asian trading session with the dollar index having fully retraced its initial decline following last week’s FOMC meeting.
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