GBP/USD Consolidates Above 1.4600

GBP/USD Consolidates Above 1.4600

30 May 2016, 17:55
Roberto Jacobs

GBP/USD Consolidates Above 1.4600

On a quiet session, GBP/USD  is consolidating above 14600, around the level it closed last week after falling earlier to 1.4587,the lowest level in six days.

In the short-term the pair managed to rise back above the 20-hour moving average, gaining some support and improving momentum. But price action is likely to remain limited for the next hours as Wall Street remains closed on Memorial Day.

Cable peaked recently at 1.4636 and then pulled back but remained above 1.4600; consolidating modest gains for the day.

What’s next

The pound is finding support around 1.4600 after falling in the previous two sessions, pulling back from 1.4738. Volatility is likely to rise during the coming days particularly ahead of Friday’s NFP report.

In the United Kingdom, economic releases include May PMI’s Manufacturing, Construction and Service index. Also, Brexit referendum polls ahead of the June 23 vote are likely to have an impact on the pair.


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