GBP/USD Pierces Through 1.4500 Handle, Seems to Extend the Momentum

GBP/USD Pierces Through 1.4500 Handle, Seems to Extend the Momentum

12 May 2016, 16:29
Roberto Jacobs
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GBP/USD Pierces Through 1.4500 Handle, Seems to Extend the Momentum

After fading its spike initial spike on BOE status-quo, the GBP/USD pair surged past 1.4500 handle and rose to a 5-day peak level of 1.4530.

As the BOE Governor Carney presser got underway, the GBP/USD pair reversed its gains to 1.4498 and dropped to 1.4432. However, broad US Dollar selling pressure after higher-than-expected weekly jobless claims figure assisted the pair to pierce through 1.4500 handle and erase half of the loss recorded in the previous week.

Even from technical perspective, the pair has conquered its immediate resistance levels on short-term charts and hence seems more likely to extend its upward trajectory in the near-term.

Technical levels to watch

On the immediate upside, the pair would be eyeing 1.4545 (May 6 high) ahead of 1.4570 (high touched on May 4). Beyond these immediate resistance levels the pair seems all set to surpass 1.4600 level and head towards its recent daily closing highs resistance near 1.4670-75 zone.

On the downside, 1.4500 handle now seems to act as immediate support, below which further downside is likely to be protected by 1.4480 support. Even if the pair drops below these immediate support levels, it seems unlikely to drop back below 1.4445-40 area, which might now have turned as downside protection for GBP bulls.


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