GBP/USD Retraces but Moves Back Above 1.4600 Handle

GBP/USD Retraces but Moves Back Above 1.4600 Handle

29 April 2016, 15:05
Roberto Jacobs

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."


Share it with friends: