GBP/USD Weaker, Challenging 1.4400

GBP/USD Weaker, Challenging 1.4400

13 May 2016, 12:34
Roberto Jacobs

GBP/USD Weaker, Challenging 1.4400

The sterling is trading on the defensive at the end of the week, with GBP/USD now hovering over the 1.4400 neighbourhood.

GBP/USD attention to US releases

The pair has dropped to 3-week lows in the 1.4380/70 band although it has later managed to regain the 1.4400 handle, all against the backdrop of a broad-based buying interest around the US dollar.

Spot has been trading in a sideline pattern as of late, including a test of weekly highs above the 1.4500 handle in spite of poor UK’s manufacturing/industrial production results, a revision lower in the NIESR GDP Estimate and a steady BoE.

Later in the NA session, US Retail Sales, Business Inventories and the Reuters/Michigan index will be in the limelight on theUSD-side.

GBP/USD levels to consider

As of writing the pair is retreating 0.29% at 1.4407 facing the immediate support at 1.4372 (low May 9) ahead of 1.4311 (55-day sma) and finally 1.4298 (low Apr.21). On the other hand, a surpass of 1.4531 (high May 12) followed by 1.4670 (high Feb.4) and then 1.4770 (high May 3).


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