GBP/USD Holds Onto Daily Gains

GBP/USD Holds Onto Daily Gains

10 May 2016, 15:05
Roberto Jacobs

GBP/USD Holds Onto Daily Gains

GBP/USD is trading firmer on Tuesday, supported by positive sentiment across financial markets and better-than-expected UK trade readings.

GBP/USD climbed to a daily peak of 1.4465 but found resistance and retreated. However, the pullback was contained by the 1.4415 zone and the pair is back headed north. At time of writing, Cable is trading at 1.4441, recording a 0.23% gain on Tuesday.

Overall, FX market retains a quiet tone, while pound investors await the BoE policy decision on Thursday. Meanwhile, uncertainty over the UK referendum on EU membership will likely keep the currency vulnerable.

GBP/USD levels to watch

As for technical levels, immediate resistances line up at 1.4478 (May 9 high), 1.4520 (10-day SMA) and 1.4570 (May 4 high). On the flip side, supports could be faced at 1.4367 (100-day SMA), 1.4317 (50-day SMA) and 1.4270 (Apr 19 low).


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