GBP/USD Off-Lows, Flirts with Hourly 100-SMA

GBP/USD Off-Lows, Flirts with Hourly 100-SMA

13 May 2016, 07:35
Roberto Jacobs

GBP/USD Off-Lows, Flirts with Hourly 100-SMA

Having bottomed out near 1.4425 region in early Asia, the GBP/USD pair is making recovery attempts to reclaim the midpoint of 1.44 handle, as dust settles over the BOE aftermath.

GBP/USD keeps the pre-BOE range intact

The bears appear to loosen their grip on the GBP, allowing a minor-bounce in the cable from fresh post-BOE lows posted at 1.4424 earlier today. However, the recovery looks fragile as risk-off trades extend into early Europe and continue to weigh on the investors mind.

Moreover, the GBP/USD pair remains under pressure as markets continue to absorb the latest BOE MPC statement along with the quarterly inflation report, both underscoring concerns surrounding Brexit fears.

Moving on, next on focus for the major remains the second-liner data in the UK construction output ahead of a fresh batch of significant US economic data.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4500 (round number), above which 1.4531/50 (post-BOE high/ psychological levels) would be tested. On the flip side, support is seen at 1.4400 (round number) below that at 1.4345 (100-DMA).


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