GBP/USD bounces off 1.4450 post-data

The sterling saw its offered tone picking up pace today, sending GBP/USD to the area of daily lows near 1.4450.

GBP/USD lower on data, USD

A bout of buying interest around the greenback has triggered an abrupt knee-jerk towards the mid-1.4400s in the pair in spite of the better-than-expected trade balance figures in the UK during April. In fact, the trade deficit shrunk a tad to £10.53 billion from March’s £10.65 billion.

Spot is extending its weekly decline for the second session in a row after Tuesday’s spike to the vicinity of 1.4650, or multi-day peaks.

The selling pressure in GBP has also been accompanied by decreasing yields in 5y, 10y Gilts.

GBP/USD levels to consider

As of writing the pair is retreating 0.30% at 1.4460 and a break below 1.4422 (55-day sma) would aim for1.4352 (low Jun.6) and then 1.4330 (low May 16). On the other hand, the next resistance aligns at 1.4645 (spike Jun.7) followed by 1.4720 (200-day sma) and finally 1.4744 (high May 6).