GBP/USD Extends Recovery Beyond 50-DMA, Awaits PMI
The GBP/USD pair extends recovery from two-week lows as we progress towards early European trading, with the bulls unperturbed by risk-off sentiment persisting in full swing.
GBP/USD back above 50-DMA at 1.4433
Currently, GBP/USD trades 0.19% higher at fresh session highs of 1.4443, moving away from fresh two-week lows reached yesterday at 1.4386. The cable stages a minor-relief this Thursday after having slumped more than two big figures over the last two trading sessions, as the bulls benefit from broad based US dollar weakness, while a short-covering rally after the recent weakness also cannot be ruled.
The GBP/USD pair came under aggressive selling pressure yesterday after the YouGov polls on Brexit revealed votes for the Stay and Leave camp remain at neck-to-neck levels as compared to a majority seen for Stay previously. Moreover, markets ignored upbeat UK manufacturing PMI data released in the previous session as uncertainty surrounding Brexit vote continues to drive the GBP markets.
Later today, markets now await the construction PMI report ahead of the ECB policy meeting, which may have a “rub-off effect” on the pound.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4518/19 (5 & 20-DMA), above which 1.4570/1.4600 (10-DMA/ Round number) would be tested. On the flip side, support is seen at 1.4400 (round number) below that at 1.4358 (100-DMA).