GBP/USD Fails to Sustain Strength above 1.4600 Mark
Following the release of UK GDP print, which matched consensus estimates, the GBP/USD
recovered from early losses and climbed back above 1.4600 mark just to
erase all of its gains to trade nearly unchanged from yesterday's close.
Earlier
on Wednesday, the UK Office for National Statistics reported a tepid
0.4% economic growth during the first quarter of 2015. Although, the
reading was below 0.6% growth recorded in the last quarter of 2015, it
was still in-line with consensus estimates. The yearly growth rate was
unchanged at 2.1% and was higher than 2.0% expected. With the Fed
scheduled to announce its monetary policy in few hours from now, the
pair seems more likely to holding within day's trading range.
Technical levels to watch
On
Tuesday, the pair tested a key resistance near 1.4640-50 area marking
38.2% Fibonacci retracement level of 1.5930-1.3835 downslide and
retraced back below 1.4600 mark. This 1.4640-50 area might continue to
act as immediate resistance on the upside. Even if the pair manages to
clear this immediate resistance, any further up-move might confront
resistance just below 1.4700 handle (1.4685-90 area), representing the
upper trend-line resistance of a short-term ascending trend-channel
formation on H4 chart.
Meanwhile on the downside, weakness back
below 1.4550 immediate support seems to drag the pair towards testing
the ascending trend-channel support, currently pegged near 1.4460-50
area. Only a decisive break below the trend-channel now seems to negate
the pair's near-term bullish bias.
