GBP/USD Rejected Near 1.4500, Recedes to 1.4475

GBP/USD Rejected Near 1.4500, Recedes to 1.4475

6 May 2016, 07:47
Roberto Jacobs

GBP/USD Rejected Near 1.4500, Recedes to 1.4475

Having bottomed near 1.4470 region in the last US session, the GBP/USD pair takes on the recovery towards 1.45 handle, only to face rejection just below the last and now trades back in the red zone.

GBP/USD capped below 1.4500, NFP in focus

The GBP/USD pair trades modestly flat at 1.4477, having faded a spike to 1.4494 in early trades. The cable wiped-out gains and now gradually drifts lower, as the US dollar remains solid against its major peers before the US labour market report, as recent hawkish comments from Fed officials lends support the upside bias in the greenback. Meanwhile, the USD index now trades +0.05% higher at 93.77 levels.

Moreover, a series of recent sluggish UK fundamentals combined with risk-off tone in the markets further add to the bearish pressure surrounding GBP/USD. While from a wider perspective, uncertainty over EU referendum also keeps the pound broadly undermined.

Amid a data-empty UK docket, next on tap remains the US NFP data, which will have major impact on the US dollar and will also shape up Fed next decision on the interest rates.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4494/96 (daily high/ 1h 50-SMA), above which 1.4561/70 (1h 100 & 200-SMA) would be tested. On the flip side, support is seen at 1.4442 (20-DMA) below that at 1.4403/00 (daily S2/ round number).


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