GBP/USD Attempting a Move Past 20-DMA Resistance
The GBP/USD
pair maintained its bid tone above 1.4400 pivot point, lifting the pair
back to day's peak level of 1.4428 during early European session.
With
major releases scheduled for release on Tuesday and given the recent
bout of volatility in the pair, investors are unlikely to build on to
their long positions and remain on sideline ahead of BOE Super Thursday
later during the week.
On H1 chart, the pair remains within a
short-term descending trend-channel formation and has now inching higher
from an important point within the channel. On a sustained move above
day's high, also coinciding with 20-day SMA, the pair is likely to
witness some intraday movement on the upside.
Technical levels to watch
Momentum
above 1.4425-30 is likely to get extended towards the trend-channel
resistance near 1.4480 level, coinciding with high touched on Monday and
also nearing 38.2% Fibonacci retracement level of 1.4009-1.4770
up-move. On a decisive break through the 1.4480 resistance, marking a
break-out of the descending channel might increase the prospects of
further up-move for the pair.
On the flip side, reversal back
below 1.4400 handle the could witness some additional selling pressure
towards testing the descending trend-channel support, currently near
1.4340 with Monday's low, near 1.4375 level, acting as intermediate
support.
