GBP/USD Supported at 1.4600 Amid Holiday-Thinned Trades

GBP/USD Supported at 1.4600 Amid Holiday-Thinned Trades

2 May 2016, 07:37
Roberto Jacobs

GBP/USD Supported at 1.4600 Amid Holiday-Thinned Trades

The GBP/USD pair found renewed bids just ahead of 1.46 handle and now takes on the recovery towards daily highs amid a lack of fresh fundamental drivers as the UK markets remain closed today in observance of May Day.

GBP/USD well above 5-DMA at 1.4597

The GBP/USD pair trades modestly flat at 1.4613, having posted day’s high at 1.4623 and day’s low at 1.4587. The cable closed the bearish opening gap and now remains in close vicinity to the daily high as risk sentiment improves somewhat on the back of a minor pullback seen in the Asian stocks, particularly, the Nikkei.

The GBP/USD pair keeps its range-trade intact above 1.46 handle since mid-Asia, as markets closely follow the moves in the US dollar index amid holiday-thinned trades and empty UK docket.

Next of note for the major remains the US ISM manufacturing report due later today and UK’s manufacturing PMI to be published on Tuesday.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4670/71 (Feb 4 & Apr 29 High), above which 1.4700 (round number) would be tested. On the flip side, support is seen at 1.4579/75 (daily S2/ Apr 29 Low) below that at 1.4522/1.4487 (10-DMA / 1h 200-SMA).


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