GBP/USD Retraces but Moves Back Above 1.4600 Handle
The GBP/USD
pair surrendered all of its gains to drop back below 1.4600 handle
before recovering back into positive territory to trade with marginal
gains near 1.4615 level.
During early European trade, the pair
surged to hit a 2-month high level of 1.4664 before cooling off. The
strength, however, fizzled out near Feb. highs as traders would want to
take some profits off the table following the pair's up-move of over
200-pips from last week's close. Moreover, traders might also be
lightening their positions ahead of next week's top-tier economic data
releases.
On Friday, the US economic calendar features the
release of Chicago PMI and revised UoM Consumer Sentiment index for the
month of April.
Technical outlook
Valeria
Bednarik, Chief Analyst FXStreet notes "the 4 hours chart for the
GBP/USD shows that the price retreated towards its 20 SMA, currently
around 1.4580, whilst the technical indicators accelerated south, and
the Momentum indicator is poised to cross below its 100 line, indicating
a clear break lower an see the pair extending its decline down to the
1.4520/40 region.
Above 1.4620 on the other hand, the pair will
likely resume its advance, and retest the high around 1.4670, with a
break above it exposing the 1.4700/30 region."
