GBP/USD: Off-Highs, Consolidates Around 20-DMA

GBP/USD: Off-Highs, Consolidates Around 20-DMA

8 June 2016, 12:02
Roberto Jacobs
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GBP/USD: Off-Highs, Consolidates Around 20-DMA

The GBP/USD pair reversed entire upward rally triggered by surprisingly positive UK industrial production data and reverted to the negative territory amid persistent risk-off market profile, reflected by lower UK gilt yields.

GBP/USD rejected at 1.4580

Currently, GBP/USD now turns negative at 1.4541, looking to test 1.45 handle once again. The upbeat UK industrial figures induced rally in the cable remained short-lived and the prices reverted to the familiar range around 20-DMA, as underlying risk-off tone across the markets amid falling UK yields and European stocks weigh on the sentiment around the risk currency GBP.

Looking ahead, this week remains of key importance for the GBP/USD pair, as according to an announced timeline with regard to the EU referendum, there will be two more public debates on the Brexit issue - one in the UK's parliament on Wednesday, and the second on Thursday, with three representatives each supporting "Leave" and "Remain" camp.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4600 (round number), above which 1.4658 (Jun 7 high) would be tested. On the flip side, support is seen at 1.4483 (5-DMA) below that at 1.4468 (50-DMA).


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