GBP/USD Continues to Struggle at Ascending Trend-Channel Resistance
GBP/USD Continues to Struggle at Ascending Trend-Channel Resistance
The GBP/USD
pair's recovery from day's through level of 1.4394 gained momentum but
failed to lift the pair beyond a short-term ascending trend-channel
resistance, near day's peak level of 1.4467.
Earlier during
European session the pair ran through fresh offers on
softer-than-expected UK manufacturing & industrial production data.
Total industrial production in the month of March printed a growth of
0.3% as against +0.5% expected but better than a decline of 0.2%
recorded in the previous month. Meanwhile the manufacturing production
rebounded to show a growth of 0.1% vs an expected growth of 0.4%, but
still better-than a 0.9% decline in February.
With Super Thursday
on the docket for Thursday and given the recent bout of volatility seen
in USD, traders seems unlikely to further push the pair and are likely
to remain on the sidelines ahead of the big event risk.
From
technical perspective, the pair is once again reversing from a
short-term descending trend-channel resistance and a follow through
selling pressure might now force traders to unwind their bullish bets,
thus dragging the pair back towards 1.4400 handle.
Technical levels to watch
Reversal
back from the trend-channel resistance might continue to find support
near 1.4400 handle. Subsequent weakness back below 1.4400 level might
now drag the pair immediately towards its intermediate support at
100-day SMA (near 1.4365 level) before heading towards an important
support confluence near 1.4325 level, comprising of 50-day SMA and the
trend-channel support.
Alternatively, a decisive break through
the trend-channel resistance near 1.4465-70 area, could lift the pair
beyond weekly highs resistance near 1.4480. Momentum above 1.4480 level
might now accelerate the appreciating move beyond 1.4500 psychological
mark, towards its next major resistance near 1.4530-35 horizontal zone.
