GBP/USD Fades the Advance Above 1.4400

GBP/USD Fades the Advance Above 1.4400

16 May 2016, 17:24
Roberto Jacobs

GBP/USD Fades the Advance Above 1.4400

The sterling has regained momentum today along with the rest of the risk-associated assets, pushing GBP/USD to fresh highs beyond the 1.4400 mark.

GBP/USD higher on USD-selling

The broad-based sentiment keeps hurting the US dollar and thus supporting the recovery of the pair from earlier troughs in the 1.4340/30 band to levels above 1.4400 the figure, although a more sustainable breakout of the latter remains elusive so far.

Ahead in the week, GBP will take centre stage in light of the release of inflation figures (Tuesday), labour market results (Wednesday) and retail sales (Thursday). On the USD-side, the FOMC minutes (Wednesday) will be the main event across the Atlantic.

GBP/USD levels to consider

As of writing the pair is up 0.06% at 1.4386 and a surpass of 1.4466 (20-day sma) would aim for 1.4531 (high May 12) and then 1.4670 (high Feb.4). On the flip side, the next support lines up at 1.4326 (55-day sma) ahead of 1.4168 (78.6% Fibo of 1.4004-1.4770) and finally 1.4004 (low Apr.6).


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