GBP/USD Retests Hourly 200-SMA at 1.4265

GBP/USD Retests Hourly 200-SMA at 1.4265

29 March 2016, 12:10
Roberto Jacobs
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GBP/USD Retests Hourly 200-SMA at 1.4265

The GBP/USD pair recovered losses and swung higher from a brief dip below 1.42 handle, now heading for a test of 1.43 handle amid improved risk-sentiment.

GBP/USD bounces-off lows near 1.4200

The GBP/USD pair rises 0.08% to fresh session highs of 1.4266, revisiting daily highs posted at 1.4268 in opening trades. The cable staged a solid comeback post-European open and jumped back on the bids beyond 1.42 barrier, as an improved risk-tone in the markets underpinned the higher-yielding currency GBP. Among the European indices, Germany’s DAX is up 0.73%, the UK’s FTSE gains 0.30%, while the pan-European benchmark, the Euro Stoxx 50 rallies 0.75%.

However, the major struggles to extend to the upside as the sell-off in the oil prices combined with a minor USD correction, continues to keep the prices in check. Both crude benchmarks are down over -1.50%, with markets awaiting the weekly stockpiles report.

Next on tap for the cable remains the US datasets in absence of macro updates from the UK docket. While Fed Chair Yellen’s comments will be closely heard for fresh momentum on the pair. Further, BOE Chief Carney’s speech scheduled on Wednesday also remains in spotlight.

GBP/USD Levels to consider   

The pair has an immediate resistance at 1.4300 (round number), above which 1.4382 (daily R2) would be tested. On the flip side, support is seen at 1.4200/1.4196 (round number/ daily low) below that at 1.4157 (1h 100-SMA).

(Market News Provided by FXstreet)

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