GBP/USD Flirting with 1.4650, Highest Since Jan 6th Once Above...

GBP/USD Flirting with 1.4650, Highest Since Jan 6th Once Above...

29 April 2016, 07:12
Roberto Jacobs
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GBP/USD Flirting with 1.4650, Highest Since Jan 6th Once Above...

GBP/USD has been on a steady rise in Asia hours, with bulls currently threatening with the prospects of a break through 1.4650, a key level of resistance, which if broken, would represent the highest level for the pair since January 6th this year.

FOMC, Brexit polls driving GBP/USD higher

The dumping of US Dollar across the board has only accelerated following another dovish outcome by the FOMC earlier this week, which if coupled with an increased perception of the 'remain' campaign taking an advantageous lead in the Brexit polls (especially after US President Obama's comments on UK/US trade deal prospects if UK were to leave the EU), has resulted in a consistent addition of new buy-side business in the Sterling, as reflected by the recent increase of open interest in the 6G contract late this month, as the rise picked up momentum.

What's in store for UK, US economies today?

In terms of fundamentals, today's calendar in the UK does not present market moving events of note, with net lending to individuals, M4 money supply and mortgage approvals, due all at 8.30GMT. Meanwhile, US economic indicators should inject some volatility, with core PCE price index, employment cost, personal spending, Chicago PMI and UoM consumer sentiment, the line-up for this Friday, to be published between 12.30 and 2GMT.

GBP/USD technicals

Mohammed Isah, Analyst at FXTech strategy, shares his view on GBP/USD, noting that further bullishness is envisaged. According too Isah, "resistance stands at the 1.4650 levels with a turn above here allowing more strength to build up towards the 1.4700 level ahead of 1.4750 level followed by the 1.4800 level." On the whole, Isah sees 1.4550 level as immediate support, adding that "a break will turn attention to the 1.4500 level."


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