GBP/USD Reverses UK Data-led Slide, Jumps Above 1.4360

GBP/USD Reverses UK Data-led Slide, Jumps Above 1.4360

21 April 2016, 13:02
Roberto Jacobs
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GBP/USD Reverses UK Data-led Slide, Jumps Above 1.4360

Fresh bids emerged right at 1.43 handle, allowing the bulls to embark upon a solid 50-pips recovery mode in the last hour amid broad commodities rally.

GBP/USD supported at 1.4300

The GBP/USD pair trades 0.22% to fresh session highs at 1.4366, having reversed a dip to 1.4300 levels, daily lows. The cable shrugged-off dismal UK retail sales figures and caught fresh bids once again, taking the prices higher towards the familiar range around 1.4350 levels.

The UK's retail sales for March dropped sharply to -1.3% m/m, down from -0.5% booked in February. The yearly print decelerated from 3.6% to 2.7%.

The major recouped losses and rebounded higher, as higher commodities’ prices continue to support the risk currency GBP. Next in focus remains the ECB policy outcome, as any impact on the EUR/USD pair is expected to have a ‘rub-off’ effect on the cable.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4375 (100-DMA), above which 1.4400 (psychological levels) would be tested. On the flip side, support is seen at 1.4307/00 (5-DMA/ round figure) below that at 1.4260 (10-DMA).


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