GBP/USD Testing 1HR 200-SMA to the Downside, UK Jobs Eyed

GBP/USD Testing 1HR 200-SMA to the Downside, UK Jobs Eyed

18 May 2016, 07:16
Roberto Jacobs
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GBP/USD Testing 1HR 200-SMA to the Downside, UK Jobs Eyed

The GBP/USD pair extended its retreat from above 1.45 handle and now inches lower towards 1.4300 levels as a broadly higher greenback weighs on the major amid mixed Asian session.

GBP/USD flirting with key support near 1.4430

Currently, GBP/USD trades -0.17% lower at 1.4437, having posted session lows at 1.4432 in the last hour, where the hourly 50, 100 & 200-SMA coincide. The cable ran through fresh offers near daily pivot at 1.4458 and extended further to the downside, as the US dollar rebounded sharply higher against a basket of six major currencies amid a slightly better risk tone, induced by better-than expected Japanese GDP data.

Moreover, the USD bulls continue to ride higher on upbeat UIS CPI-driven wave and bolster the greenback ahead of the FOMC minutes due for release later today. Meanwhile, focus now remains on the UK labour market report lined up for release in the EU session, especially after a softer UK CPI print.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4487/1.4500 (20-DMA/ round number), above which 1.4524 (May 17 High/ daily R1) would be tested. On the flip side, support is seen at 1.4400 (round figure) below that at 1.4360 (50-DMA).


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