GBP/USD Regains 1.4500 and Beyond Amid Weaker USD

GBP/USD Regains 1.4500 and Beyond Amid Weaker USD

23 May 2016, 07:31
Roberto Jacobs

GBP/USD Regains 1.4500 and Beyond Amid Weaker USD

The GBP/USD pair takes on the recovery above 1.45 handle as we progress towards early European trades, with the bulls closely tracking USD moves amid a lack of fresh catalysts.

GBP/USD finds support ahead of 20-DMA at 1.4484

Currently, GBP/USD trades modestly flat at 1.4518, receding from session tops reached at 1.4525 over the last hour. The cable resumes last week’s upward trajectory, reversing a corrective slide seen in the previous session, as the bulls regained control after G7 leaders unanimously voiced their support for anti-Brexit vote, as they wished Britain to keep EU’s membership.

Moreover, a minor-correction seen in the US dollar against its major peers, also added to the upbeat tone seen around GBP/USD. Looking ahead, the major will be driven by the risk sentiment prevalent in the markets, in absence of any macro event from the UK docket today. Hence, focus remains on the second-liner US flash manufacturing PMI and the Fed speak due later in the NY session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4536/44 (1h 100-SMA/ 5-DMA), above which 1.4600 (round number) would be tested. On the flip side, support is seen at 1.4477/75 (1h 200-SMA/ 10-DMA) below that at 1.4400 (May 18 Low).


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