GBP/USD Firmer, Regains 1.4400 and Above

GBP/USD Firmer, Regains 1.4400 and Above

22 April 2016, 13:45
Roberto Jacobs

GBP/USD Firmer, Regains 1.4400 and Above

The sterling has reverted the earlier drop and is now pushing GBP/USD to daily tops beyond the 1.4400 mark.

GBP/USD bid via GBP-crosses

The British pound has gathered further traction in response to the increasing weakness hurting EUR/GBP, exacerbated after the break below the critical support in the mid-0.7800s.

In addition, and collaborating with the upside momentum in GBP, the BoJ-induced weakness around JPY continues to support a needle-like up move in GBP/JPY.

Ahead in the session, the only release of note will be April’s advanced manufacturing PMI tracked by Markit in the US economy, expected a tad higher at 52.0 vs. 51.5 previous.

GBP/USD levels to consider

As of writing the pair is up 0.44% at 1.4386 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).


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