GBP/USD moves off 5-month low

By FXstreet.com | Updated August 25, 2014 AAA

FXStreet (Córdoba) - The GBP/USD managed to fill the downward gap left at the weekly opening, returning to Friday's closing area, although momentum was weak.



The GBP/USD recovered from a fresh 5-month low of 1.6535 but the bounce was recently capped by the 50-day SMA at 1.6575. At time of writing, the pair is trading around 1.6555, just where it closed Friday. There is no UK data scheduled for the day, but US PMIs and new home sales could offer some direction.



Last Friday, the US dollar strengthened further as comments from Fed Chair Yellen in Jackson Hole were perceived as less dovish, even though when she offered nothing really new.



GBP/USD levels to watch



As for technical levels, the GBP/USD could find immediate supports at 1.6535 (Aug 25 low), 1.6500 (psychological level) and 1.6460 (Mar 24 low). On the flip side, resistances are seen at 1.6600 (psychological level/100-hour SMA), 1.6651 (10-day SMA) and 1.6678 (Aug 20 high/200-day SMA).



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