GBP/USD Again Fails to Cut Through Hourly 200-MA
American dollar suffered due to a weak rebound in CPI, pushing the GBP/USD pair back to hourly 200-MA, which if failed to take out due to a sharp drop in weekly jobless claims.
Trades around 1.4160
An
attempt to take out hourly 200-MA level of 1.4175 ran out of steam
earlier today, pushing the spot back to 1.4115 levels from where it
recovered to 1.4178 on a 0.1% rise in CPI, which was weaker than
expected figure of 0.2%.
However, prices fell back to 1.4160 as
initial jobless claims fell to lowest since 1973 last week. Meanwhile,
Bank of England’s cautiously dovish stance and Brent polls showing a tie
between “in” and “out” vote is also making it hard for GBP to recover
losses.
GBP/USD Technical Levels
A
strong resistance at 1.4176 (hourly 200-MA) needs to be breached if
prices are to move higher to 1.42-1.4221 (hourly 50-MA). A violation
there could signal intraday bearish invalidation, trapping bears on the
wrong side and thus helping the pair extend gains to 1.4252 (50% of
1.4669-1.3835).
Conversely, a break below 1.41 would expose
support at 1.4079 (Jan 21 low), under which a strong support at 1.4032
(23.6% of 1.4669-1.3835). Beyond the same prices could put 1.40 handle
to test.
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