GBP/USD Trims Gain from Around 1.4700 Level

GBP/USD Trims Gain from Around 1.4700 Level

2 May 2016, 17:31
Roberto Jacobs

GBP/USD Trims Gain from Around 1.4700 Level

The GBP/USD pair pared some of its gains from the vicinity of 1.4700 mark and dropped back to 1.4660 level.

The pair continues to climb heights and moved to session high of 1.4696, inch closer to 1.4700 handle before retracing back a bit as investors now await for the release of ISM manufacturing PMI data in order to gauge health of the US manufacturing sector.

Technical levels to watch

Although the pair reversed from higher levels, it is still holding above 1.4650 immediate support. A follow through weakness below this immediate support seems to drag the pair back towards 1.4615-1.4600 support area. This 1.4600 level marks a short-term ascending trend-channel support, held since mid-April. Hence, only a decisive break below the trend-channel support would negate prospects of any further up-move for the pair.

On the upside, until the pair continues to oscillate within the ascending trend-channel formation, it could make a fresh attempt to retest 1.4700 handle, which if conquered has the potential to trigger a fresh leg of up-move initially towards 1.4725-30 horizontal resistance and eventually towards the trend-channel resistance, currently pegged near 1.4800 round figure.


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