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16 Sep 2015
GBP/USD: M&A chatter supports the pair
FXStreet (Mumbai) - Sterling’s minor correction to 1.5395 provided to short-lived as the GBP/USD pair quickly rose back to trade above 1.5410 on Merger and Acquisition talks.
GBP bid on M&A news
Belgian drinks company AB Inbev is reportedly eyeing for UK SAB Miller. As per the, FT reports the deal could be worth around USD 245bn. Neither company has official confirmed the amount, although markets have kept the bids intact around GBP.
M&A gains are usually priced-in advance; i.e. well before the actual cash transfer is initiated. Consequently, such gains do not last long enough. However, Sterling could maintain the bid tone as the major part of the spike seen today was due to the upbeat UK wage and employment data.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5418 (daily high), above which the spot could target 1.5476 (Sep 10 high). On the other side, support is located at 1.5345 (200-DMA) and 1.53 levels.
GBP bid on M&A news
Belgian drinks company AB Inbev is reportedly eyeing for UK SAB Miller. As per the, FT reports the deal could be worth around USD 245bn. Neither company has official confirmed the amount, although markets have kept the bids intact around GBP.
M&A gains are usually priced-in advance; i.e. well before the actual cash transfer is initiated. Consequently, such gains do not last long enough. However, Sterling could maintain the bid tone as the major part of the spike seen today was due to the upbeat UK wage and employment data.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5418 (daily high), above which the spot could target 1.5476 (Sep 10 high). On the other side, support is located at 1.5345 (200-DMA) and 1.53 levels.