GBP/USD steadies on rise in gilt yields

Omkar Godbole FXStreet Contributor

FXStreet (Mumbai) - The GBP/USD appears to have stabilized around 1.4740 levels, after having recovered from the low of 1.4720 on the back of a moderate uptick in the UK gilt yields.

Pounds steadies as Yields rise

The yields finally posted moderate gains, which halted the losses in the cable. The 10-year Gilt yield in the UK inched up by 1.5 basis points (bps) 1.549, while the 2-year yield advanced 1.5 basis points to 0.448%.

Moreover, the yields have taken a beating since the last week on growing speculation that the Bank of England would hike rates more gradually than expected. This resulted in weak yields, which weakened the British Pound.

GBP/USD Technical Levels

The immediate resistance is seen at 1.4807 (5-DMA), above which the pair could test 1.4843 (10-DMA). On the flip side, support is seen at 1.4720, under which losses could be extended to 1.4633 levels.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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