GBP/USD Off-Highs, but Corrective Mode Intact Near 1.4360

GBP/USD Off-Highs, but Corrective Mode Intact Near 1.4360

16 May 2016, 07:34
Roberto Jacobs
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GBP/USD Off-Highs, but Corrective Mode Intact Near 1.4360

The GBP/USD pair bounced from near fifteen-day lows and extended higher beyond 1.4350 levels, before facing fresh offers near 1.4370 as risk-off once again returned to markets.

GBP/USD remains capped below 5-DMA

Currently, GBP/USD drops -0.10% to 1.4365, easing-off session tops printed at 1.4371 in the last hour. The cable halted its corrective mode after Friday’s massive slump and returned to the red zone as risk conditions reversed course, with risk-off moods seeping back into the markets after a sudden drop in the Japanese benchmark, the Nikkei index, crushed risk appetite once again. The Nikkei 225 index now trades +0.16% higher versus +1.10% seen earlier this session.

However, the downside remains cushioned on the back of rallying oil prices and a broadly muted US dollar. Meanwhile, markets now await the London open for fresh impetus on the risk currency GBP amid a holiday-thinned trading session ahead.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4395/1.4400 (5-DMA/ round number), above which 1.4448/50 (1h 200-SMA/ psychological levels) would be tested. On the flip side, support is seen at 1.4345/38 (Daily low/ 2-week low) below that at 1.4310/00 (Apr 22 Low & round figure).


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