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21 Apr 2015
GBP/USD trims losses circa 1.4885
FXStreet (Mumbai) - GBP/USD recovered half its slide and inches closer towards 1.49 handle in the mid-European session, as the US dollar took a breather in its rally and retreated from highs versus its major currency, while the bearish tone on the pound still persists.
GBP/USD rises from 1.4856
The GBP/USD pair trades -0.14% at 1.4885, extending its recovery from fresh session lows of 1.4856. The GBP/USD pair recovered as the dollar index which measures the relative strength of the greenback against a basket of six major currencies eased from fresh 3-day highs at 98.68 and now trades at 98.48, up 0.33% on the day.
The cable is expected to remain pressure amid persistent broad based US dollar strength as also on uncertainties surrounding UK elections in a data-thin session ahead. Meanwhile, markets will now shift their focus towards tomorrow’s BOE minutes for further momentum.
Valeria Bednarik, chief analyst at FXStreet explains, “The pair maintains a short term bearish tone, as the 1 hour chart shows that the price develops below a bearish 20 SMA, whilst the technical indicators head lower below their mid-lines."
"In the 4 hours chart the price broke below its 20 SMA and the 200 EMA, both converging in the 1.4910 region acting now as the immediate intraday resistance, while the technical indicators head lower around their mid-lines, supporting the shorter term view."
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4909 (Today’s High) above which gains could be extended to 1.4971 (April 16 High) levels. On the flip side, support is seen at 1.4810 (April 16 Low) below which it could extend losses to 1.4774 (April 2 Low) levels.
GBP/USD rises from 1.4856
The GBP/USD pair trades -0.14% at 1.4885, extending its recovery from fresh session lows of 1.4856. The GBP/USD pair recovered as the dollar index which measures the relative strength of the greenback against a basket of six major currencies eased from fresh 3-day highs at 98.68 and now trades at 98.48, up 0.33% on the day.
The cable is expected to remain pressure amid persistent broad based US dollar strength as also on uncertainties surrounding UK elections in a data-thin session ahead. Meanwhile, markets will now shift their focus towards tomorrow’s BOE minutes for further momentum.
Valeria Bednarik, chief analyst at FXStreet explains, “The pair maintains a short term bearish tone, as the 1 hour chart shows that the price develops below a bearish 20 SMA, whilst the technical indicators head lower below their mid-lines."
"In the 4 hours chart the price broke below its 20 SMA and the 200 EMA, both converging in the 1.4910 region acting now as the immediate intraday resistance, while the technical indicators head lower around their mid-lines, supporting the shorter term view."
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4909 (Today’s High) above which gains could be extended to 1.4971 (April 16 High) levels. On the flip side, support is seen at 1.4810 (April 16 Low) below which it could extend losses to 1.4774 (April 2 Low) levels.