GBP/USD Sell-Off Resumes, Breaches 1.44 Handle

GBP/USD Sell-Off Resumes, Breaches 1.44 Handle

13 May 2016, 09:27
Roberto Jacobs
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GBP/USD Sell-Off Resumes, Breaches 1.44 Handle

The recovery in the GBP/USD pair lost legs just ahead of hourly 100-SMA, and resumed the ongoing downward momentum amid rising demand for the greenback across the board.

GBP/USD breaches Thursday’s high

The bears regained lost footing over the last hour, knocking-off GBP/USD pair to fresh two-day lows of 1.4394, and now heads towards 100-DMA located at 1.4345.

A renewed selling seen in the cable can be attributed to the strengthening US dollar against its major competitors, as investors bid-up the US currency before the US retail sales, PPI and consumer sentiment data due later in the NA session.

Looking ahead, amid a data-light UK docket, the sentiment around the oil and stock markets will continue to influence the major. While the second-tier data in the UK construction output will be eyed for any impetus on the GBP.

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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