GBPUSD Resilience Gives us Pause, but not out of Woods Yet

Key Highlights

  • British Pound managed to trade above a major resistance versus the US Dollar and looks set for more upsides.
  • GBPUSD has an intermediate resistance at 1.5370-80 and support at 1.5280.
  • In Australia, the Retail Sales released by the Australian Bureau of Statistics posted no change in May 2015 whereas the market was expecting a rise of 0.4%.

GBPUSD – Technical Analysis

The British Pound enjoyed a good rise against the US Dollar, as the GBPUSD pair traded above an important bearish trend line on the 4-hours chart, which cleared the way for more gains. The pair managed to break the 23.6% Fib retracement level of the last drop from the 1.5698 high to 1.5168 low, but struggled to breach the 38.2% Fib level.

Moreover, the pair also made an attempt to settle above the 200 simple moving average (4-hours), but failed. In short, the 1.5380-1.5400 area is acting as a strong barrier for the pair, and might push the pair a bit lower moving ahead. However, that can be considered as a correction before the pair continues to move higher.

GBPUSD

On the downside, there is a support building around 1.5260, which acted as a pivot area before. A break below the mentioned level might turn the bias to bearish.

Looking Ahead

Today, the BoE Interest Rate Decision will be announced by the Bank of England, which might play a role in a break in GBPUSD. Let’s see how the pair trades in the near term.

Australian Retail Sales

Earlier during the Asian session, the Australian Retail Sales, i.e. a survey of goods sold by retailers is based on a sampling of retail stores of different types and sizes was released by the Australian Bureau of Statistics. The forecast was lined up for an increase of 0.4% in the retail sales in April 2015, compared to the preceding month. However, the outcome was below the expectation, as Australian Retail Sales registered no changes in April 2015.

However, there was an increase in the trend terms. There are the industries, which rose in trend terms in April 2015, as per the report published. “Food retailing (0.2%), Clothing, footwear and personal accessory retailing (1.0%), Cafes, restaurants and takeaway food services (0.4%), Household goods retailing (0.2%), Other retailing (0.3%) and Department stores (0.2%)”.

The AUDUSD pair was not impressed by the outcome and dived more than 50 pips to trade near 0.7700.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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