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GBP/USD regains 1.6000

FXStreet (Edinburgh) - The pound continues to push higher on Wednesday, lifting GBP/USD back above the 1.6000 psychological mark.

GBP/USD boosted by risk sentiment

Spot is following the rest of the risk-associated assets today, advancing more than a big figure from the 1.5920 region posted during the European morning. Disappointing US docket with both retail sales and the Empire State index coming in below investors’ expectations are taking a toll on the greenback, catapulting GBP and its peers. “Downward momentum is still strong but oversold conditions suggest a slower pace of decline from here. Expect 1.5940 to cap for a move towards 1.5840 before a recovery is likely”, observed Quek Ser Leang, Market Analyst at UOB Group.

GBP/USD levels to consider

At the moment the pair is up 0.72% at 1.6020 and a surpass of 1.6067 (10-d MA) would aim for 1.6095 (high Oct.14) and then 1.6126 (high Oct.13). On the flip side, the immediate support aligns at 1.5854 (low Nov.12 2013) ahead of 1.5776 (low Sep. 13 2013) and finally 1.5722 (61.8% of 1.4814-1.7192).

DJIA falls 1%, US ten-year yield falls below 2%

The DJIA has opened lower today in line with the cues from the European markets, while the ten-year treasury yield has declined below 2% for the first time since June 2013.
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