GBP/USD Prints New Highs Near 1.4450 on UK Trade

GBP/USD Prints New Highs Near 1.4450 on UK Trade

10 May 2016, 11:52
Roberto Jacobs

GBP/USD Prints New Highs Near 1.4450 on UK Trade

The GBP/USD pair keeps the bid tone intact following the release of favourable UK trade balance data as markets absorb the latest data amid underlying risk-on tone prevalent in the markets.

GBP/USD ends a five-day decline

The GBP/USD pair trades +0.25% higher at fresh session highs of 1.4447, looking to test Monday’s high at 1.4480. The cable caught a sudden bid-wave after better than expected UK goods trade data boosted the pound across the board, especially with the increase in exports calming concerns over British economic prospects.

The goods trade deficit shrank more than expected to GBP11.2 billion in March from a revised GBP11.4 billion in February. The narrowing goods trade deficit was mainly in response to a rise in exports by GBP400 million to GBP23.7 billion.

Moreover, a subdued trading activity seen around the US dollar against its major peers combined with risk-on rally in equities and higher oil prices, collaborated to the sudden upmove in the major.

With the UK data out of the way, immediate focus now remains on the US JOLTS jobs openings data lined up for release later in the NA session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4465/1.4500 (1h 100-SMA/ round number), above which 1.4538 (1h 200-SMA) would be tested. On the flip side, support is seen at 1.4356/50 (100-DMA/ psychological levels) below that at 1.4310/00 (Apr 22 Low/ round figure).


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