GBP/USD analysis: shy recovery not enough to confirm a temporal bottom

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3976

Pound remains out of market's favor, bounce triggered by USD weakness.
UK calendar with little to offer this Wednesday.

The GBP/USD pair posted a nice recovery from a fresh April low of 1.3917, as enthusiasm over the greenback faded on better developments in the stocks' markets. The UK released the CBI industrial Trend Survey on Orders for April, which came in at 4, against the expected 6, as the positive sentiment was backed by a cheaper Pound. The UK macroeconomic calendar has nothing to offer this Wednesday, while there are no fresh news about progress on Brexit negotiations. The Pound fell out of market's favor as first-tier data released last week disappointed big, while BOE's Governor Carney downplayed chances of a May hike. After the latest plunge, the GBP/USD pair is well below the 23.6% retracement of such slide, at 1.4025 and as long as below the level, chances are still to the downside. Technical indicators in the 4 hours chart have recovered from oversold territory, but remain below their mid-lines, while the 20 SMA extended its slide and its currently around 1.4000, also limiting chances of an upward extension.

Support levels: 1.3960 1.3920 1.3880

Resistance levels: 1.3990 1.4025 1.4060

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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