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GBP/USD: Supported by Key fib level, back to square one

FXStreet (Mumbai) - The GBP/USD found support at 1.5490 (50% retracement of the Aug end fall) and recovered back to the pre-retail sales level of 1.5515.

Stalling near 50-DMA

The uptick in the pair has once again stalled closer to the 50-DMA located on 1.5519 levels. The UK retail sales growth slowed down on a yearly basis and that hurt Sterling, however, a month-on-month gain ensured the spot bounced-off the key fib support to trade closer to its 5-DMA.

Overall, the UK retail sales turned out to be a non-event for the pair as investors remain on the sidelines ahead of the Federal Reserve’s rate decision due later today.

GBP/USD Technical Levels

The immediate resistance is located at 1.5519 (50-DMA and 100-DMA), above which gains could be extended to 1.5550 (50% of June rally). On the other side, support is located at 1.5490, under which the pair could drop to 1.5460 (61.8% of June rally).

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