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).
