28 Apr 2016
GBP/USD fails to sustain above 1.4600, US GDP eyed
The GBP/USD pair made another failed attempt to sustain its strength above 1.4600 mark and the pair has now erased majority of its early gains and has dropped back below 1.4550 level.
Traders are now awaiting for the release of next key trigger, US advance GDP print for the first quarter of 2016. Although, consensus estimates point to growth moderation, but a surprisingly strong number might force short-term traders to unwind their bearish USD positions.
Technical levels to watch
After failing to sustain above 1.4600 handle and a subsequent drop back below 1.4550 level suggests retest of a short-term ascending trend-channel support near 1.4500 round figure mark. A decisive weakness below the ascending trend-channel support seems to accelerate the fall immediately towards 1.4470 intermediate support ahead of a key support near 1.4430-25 area.
On the upside, 1.4600 remains an important hurdle to clear. On a decisive break-through this key resistance the pair should manage to surpass 1.4635-40 resistance zone and head towards testing the ascending trend-channel resistance near 1.4730-40 with 1.4700 round figure mark providing some minor intermediate resistance.
Traders are now awaiting for the release of next key trigger, US advance GDP print for the first quarter of 2016. Although, consensus estimates point to growth moderation, but a surprisingly strong number might force short-term traders to unwind their bearish USD positions.
Technical levels to watch
After failing to sustain above 1.4600 handle and a subsequent drop back below 1.4550 level suggests retest of a short-term ascending trend-channel support near 1.4500 round figure mark. A decisive weakness below the ascending trend-channel support seems to accelerate the fall immediately towards 1.4470 intermediate support ahead of a key support near 1.4430-25 area.
On the upside, 1.4600 remains an important hurdle to clear. On a decisive break-through this key resistance the pair should manage to surpass 1.4635-40 resistance zone and head towards testing the ascending trend-channel resistance near 1.4730-40 with 1.4700 round figure mark providing some minor intermediate resistance.