GBP/USD: Bulls Taking Back Control for 1.44 Handle
GBP/USD has been in a series of daily declines of late, but bulls are back in charge today.
GBP/USD rallied onto the 1.44 handle and penetrated the 50 sma on the hourly time frames on a strong decisive move with the dollar weakening across the board. The U.S. has seen some poor data in the Empire State's manufacturing data missing expectations in a large scale at -9.02 vs 6.50 expected and 9.56 prior.
Elsewhere, oil has rallied along with industrial metals along with the S&P making a comeback after last week's poor performances. Meanwhile, Brexit fears could keep a lid on further advances towards 1.45 territory.
Analysts at Commerzbank explained that the market remains offered intraday while capped 1.4545. "No great bias here, but it is possible that this is a return to point of break out, however, we also recently charted a key day reversal to the downside on 3 rd May, so we are in charting limbo – although we are biased to the downside, who added, "Only a close below 1.4319, the 55 day ma will the chart picture start to deteriorate to leave the 1.4180 2 month uptrend exposed. Initial resistance is found 1.4545 ahead of 1.4665. Only a rise and daily close above 1.4695 will neutralise our outlook (not favoured) and trigger a move to at least 1.4830, the 200 day ma."