GBP/USD: Fresh bids emerge at 5-DMA, recovers to 1.4270

By FXStreet FXStreet (Mumbai) – The cable ran through fresh bids at 5-DMA in the recent dealings, and now retraces losses as the European markets continue to consolidate.

GBP/USD regains 10-DMA and beyond

The GBP/USD pair trades almost unchanged at 1.4267, quickly reversing a dip to lows at 1.4235, where 5-DMA coincides. The pound manages to recover ground somewhat against its American counterpart and now looks to reclaim 1.43 handle as risk-off moods appear to ease amid stabilizing European stocks. While the oil prices also trim losses and added to the renewed optimism in the markets.

Moreover, broad based US dollar weakness continues to keep the downside restricted in the GBP/USD pair. While the recovery looks fragile on the back of strengthening EUR/GBP cross, which hovers near 0.76 handle, recording a 0.30% gain on the day.

Next on tap, BOE Carney’s speech due tomorrow will take centrestage before the crucial FOMC statement due to be published on Wednesday.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4325/41 (Jan 18 & 19 High), above which 1.4364 (Jan 22 High) would be tested. On the flip side, support is seen at 1.4235 (daily low/ 5-DMA) below which it could extend losses to towards 1.4215/00 (1h …read more

Source:: FX Street