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24 Mar 2016
Cable attempting a recovery, stands exposed to profit taking
GBP/USD is attempting a recovery amid thin volumes, trading just a few pips short of 1.41 handle after the UK retail sales release was better-than-estimates.
Profit taking ahead of extended weekend
Pound has dropped almost 450 pips since Friday and thus short unwind may gain pace amid weak volumes.
A better-than-expected retail sales release may end up becoming the reason bears were looking for to take profits. The focus now is on the US data release – weekly jobless claims and US durable goods orders. Fed’s Bullard comments are likely to hit the wires in the US session as well.
GBP/USD Technical Levels
The spot currently trades around 1.4085, with immediate hurdle at 1.41 handle. A break higher if followed by acceptance above the rising trend line hurdle at 1.4160 may trigger unwinding of shorts initiated in the NY session yesterday and push the spot higher to 1.42 levels.
Profit taking ahead of extended weekend
Pound has dropped almost 450 pips since Friday and thus short unwind may gain pace amid weak volumes.
A better-than-expected retail sales release may end up becoming the reason bears were looking for to take profits. The focus now is on the US data release – weekly jobless claims and US durable goods orders. Fed’s Bullard comments are likely to hit the wires in the US session as well.
GBP/USD Technical Levels
The spot currently trades around 1.4085, with immediate hurdle at 1.41 handle. A break higher if followed by acceptance above the rising trend line hurdle at 1.4160 may trigger unwinding of shorts initiated in the NY session yesterday and push the spot higher to 1.42 levels.