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GBP/USD bounces-off 1.4200, tracks oil price recovery

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The GBP bulls found some support just ahead of 1.42 barrier, allowing a minor-recovery in GBP/USD in the last hour.

    GBP/USD supported at 1.4200

    The GBP/USD pair trades -0.15% lower at 1.4236, bouncing-off fresh session lows posted at 1.4202 some minutes ago. The cable is seen lock-stepping the oil price movement, with the prices making fresh recovery attempts, tracking a minor pullback in the black gold. Moreover, the GBP/USD pair also finds respite from the rally seen in the European equities on the back of improved risk sentiment. Germany’s DAX jumps +2.35%, the UK’s FTSE rises +1.50%, while the pan-European benchmark, the Euro Stoxx 50 rockets +2.71%.

    However, the bearish pressures still remain intact amid broad based US dollar recovery on expectations of a rebound in the US retail sales as well as PPI data, due later in the NY session.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4268/80 (daily pivot & high), above which 1.4338/46 (Apr 4 High/ daily R1) would be tested. On the flip side, support is seen at 1.4202/1.4198 (daily low/ Apr 12 low) below that at 1.4179 (10-DMA).
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