GBP USD analysis: Upbeat Ifo data lifts pound versus dollar

NEW YORK (Forex News Now) – The pound rose against the dollar on Wednesday, halting a 4-day descent, after an upbeat report on German business sentiment boosted FX traders’ risk appetite.

In European morning currency market trading, GBP/USD struck 1.5436, up 0.28 percent on the day, after rising from Tuesday’s 1-month low of 1.5372.

The Ifo research institute said earlier that its Business Climate index for the euro zone’s largest economy rose to 106.7 during the month, up from 106.2 during July. Analysts had expected a slight decline to 105.8 in August, two real time forex news outlets reported.

According to GBP USD analysis, GBP/USD was likely to touch support around the low of July 23, 1.5255, and encounter resistance around Tuesday’s high, 1.5509.

Sterling’s gains also came ahead of a key report on new orders for long-lasting U.S. manufactured goods in July, a leading indicator of production.

Elsewhere, sterling surged versus the yen: GBP/JPY traded at 130.62, up 1.1 percent, according to intraday analysis.

By ForexNewsNow Team

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