The GBP/USD pair consolidated its recent gains during the Asian session, but was unable to advance beyond the high set late Monday, at 1.4283, weighed by increasing risk aversion after Chinese trade balance data disappointed. According to official data, exports fell by 25.4% in February, while imports slid by 13.8%, resulting in a surplus of 32.59B in dollar terms, well below the previous 63.3B and the expected 50.15B.
At the time of writing BOE's Governor Mark Carney is speaking of "the economic and financial costs and benefits of UK's EU membership" before the Parliamentary Committee in London, but so far the Pound shows no signs of being affected by his words.
As for the technical picture, the 4 hours chart shows that the rally stalled at a major resistance level, the 200 EMA around 1.4270, as he pair has remained below it since mid February. The Momentum indicator in the mentioned time frame has turned flat within positive territory, in line with the latest consolidative range, while the RSI indicator retreats from overbought levels, increasing the risk of a downward move. The 20 SMA however, maintains a strong upward slope around 1.4190, offering an strong support in the case of further slides.
Despite the ongoing lack of upward strength, the bullish tone prevails, with additional gains expected towards 1.4330 in the short term, on a break above 1.4283, Monday's high. It will take a downward acceleration below 1.4190 to see the pair returning to the 1.4140/50 region, en route to 1.4100.
View the live chart of the GBP/USD
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