GBP/USD –Confluence of Resistance Intact Despite Weak US Data
GBP/USD –Confluence of Resistance Intact Despite Weak US Data
GBP/USD
failed to take out confluence of technical resistance around 1.4250
(hourly 50-MA+ 50-DMA + 1.4252-38.2% of 1.4669-1.3835) despite dismal US
retail sales release.
Hovers around 1.4240
Prices
clocked a post data high of 1.4255 before falling back to trade around
1.4240 levels. Retail sales unexpectedly dropped 0.3% in March, however,
previous month’s figure was revised higher and that may have come to
dollar’s rescue.
Meanwhile, increased speculation that Brexit
may force BOE to cut rates is also keeping the Pound under pressure.
Ahead in the day, the pair is likely to take cues from US equities.
Action in the UK gilt yields ahead of tomorrow’s BOE rate decision could
also come into play.
GBP/USD Technical Levels
A
break above immediate hurdle around 1.4250 as noted above would open
doors for 1.43-1.4330 (23.6% of 1.5930-1.3835) beyond which 1.4348
(previous day’s high) could be put to test. On the other hand, a break
below 1.42 would expose 1.4182 (hourly 200-MA) – 1.4176 (hourly 100-MA).
Acceptance below the same is necessary to crowd out bulls and trigger
further drop to 1.41 levels.
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