GBP/USD Remains at the Mercy of GBP/JPY Cross
Yen remains at the center stage of the FX markets; guiding other majors like GBP/USD via action in the GBP/JPY cross.
Cable backs off from daily highs
The
spot now trades around 1.4220 after having clocked a high of 1.4227
levels. The move is in line with GBP/JPY pair which trimmed gains from
the daily high of 153.99 to trade around 153.75 levels.
Yen
bulls finally loosened their grip, but that has not been able to push
USD/JPY pair above key technical hurdle of hourly 50-MA. Thus it remains
to be seen if the corrective move extends in the US session or proves
to be short lived.
GBP/USD Technical Levels
Acceptance
above the hourly 200-MA level of 1.4212 would open doors for 1.4252
(50% of 1.4669-1.3835) – 1.5260 (50-DMA). A break higher would expose
1.53 handle. Conversely, failure to stay above hourly 200-MA would shift
risk in favor of a drop to 1.42 under which next major support is seen
at 1.4154 (38.2% of 1.4669-1.3835).
(Market News Provided by FXstreet)
