GBP/USD Fades the Spike to 1.4370
The initial upside momentum in GBP/USD seems to have run out of steam near 1.4370, prompting the current correction to the 1.4350/45 band.
GBP/USD weekly upside capped at 1.4440
Spot is so far recovering from two consecutive retracements after climbing as high as the area of 1.4440 on Thursday, or weekly peaks.
The pair, however, is advancing for the second consecutive week with gains so far limited near 1.4430, where is located the 20-day sma, amidst alleviated fears on a ‘Brexit’ scenario and rising rumours of some sort of slowing in the UK economy.
Nothing in the UK data space today, whereas Markit’s flash manufacturing PMI is only due across the pond.
GBP/USD levels to consider
As of writing the pair is up 0.17% at 1.4347 and a breakout of 1.4440 (high Apr.21) would open the door to 1.4460 (high Mar.30) and finally 1.4517 (high Mar.18). On the other hand, the immediate support aligns at 1.4254 (20-day sma) ahead of 1.4092 (38.2% Fibo of 1.3833-1.4517) and then 1.4004 (low Apr.6).