15 Apr 2014
GBP/USD erases losses and hits daily highs
FXStreet (Córdoba) - The GBP/USD bounced sharply off intraday lows and completely erased daily losses following the knee-jerk reaction to UK inflation figures.
The GBP/USD broke out yesterday's range and fell to a 6-day low of 1.6669 only to quickly bounce toward a fresh high of 1.6730. The pound reacted positively to inflation data, which showed UK CPI fell to a 4 1/2 year low of 1.6% YoY in March, meeting market's consensus.
GBP/USD levels to watch
At time of writing, the GBP/USD is trading at 1.6725, virtually unchanged since opening, with immediate resistances at 1.6730 (Apr 15 high), 1.6743 (Apr 14 high) and 1.6786 (Apr 11 high), while supports are seen at 1.6669 (Apr 15 low), 1.6630 (20-day SMA) and 1.6603 (Apr 8 low).
From a technical perspective, Stoyan Mihaylov, analyst at DeltaStock.com said the bias here remains negative below 1.6750 resistance, for a slide towards 1.6670 support zone.
The GBP/USD broke out yesterday's range and fell to a 6-day low of 1.6669 only to quickly bounce toward a fresh high of 1.6730. The pound reacted positively to inflation data, which showed UK CPI fell to a 4 1/2 year low of 1.6% YoY in March, meeting market's consensus.
GBP/USD levels to watch
At time of writing, the GBP/USD is trading at 1.6725, virtually unchanged since opening, with immediate resistances at 1.6730 (Apr 15 high), 1.6743 (Apr 14 high) and 1.6786 (Apr 11 high), while supports are seen at 1.6669 (Apr 15 low), 1.6630 (20-day SMA) and 1.6603 (Apr 8 low).
From a technical perspective, Stoyan Mihaylov, analyst at DeltaStock.com said the bias here remains negative below 1.6750 resistance, for a slide towards 1.6670 support zone.