GBP/USD Challenges Highs Near 1.4460

GBP/USD Challenges Highs Near 1.4460

10 May 2016, 16:38
Roberto Jacobs

GBP/USD Challenges Highs Near 1.4460

The sterling is now retesting the area of daily highs vs. the greenback, sending GBP/USD to the 1.4450/60 band.

GBP/USD attention to UK releases, BoE

The pair is now gathering further traction as the dollar is losing upside momentum, allowing another visit to the upper end of the range near 1.4460 after dropping as low as the 1.4390/85 band early in the European morning.

It will be quite an interesting week for the British pound on the data front, as Industrial/Manufacturing Production figures are due tomorrow followed by the NIESR GDP Estimate and the BoE MPC meeting on Thursday. Earlier today, UK’s trade deficit narrowed a tad to £11.2 billion in March vs. February’s £11.43 billion.

Anyway, GBP is poised to remain under pressure in light of the UK referendum on June 23, with latest polls results showing a dwindling gap between the ‘Stay’ and ‘Leave’ vote.

GBP/USD levels to consider

As of writing the pair is advancing 0.27% at 1.4446 facing the next hurdle at 1.4770 (high May 3) ahead of 1.4815 (2016 high Jan.4) and finally 1.4836 (200-day sma). On the other hand, a breach of 1.4375 (low May 9) would expose 1.4369 (100-day sma) and then 1.4298 (low Apr.21).


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