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GBP/USD consolidates in a range around 1.41 handle

   •  Bulls finally manage to lift the pair beyond the 1.4100 handle.
   •  A modest USD uptick now seemed to cap additional gains.

The GBP/USD pair trimmed some of its early gains and has now retreated around 20-pips from to fresh multi-day tops.

The pair built on Friday's strong rebound from sub-1.4000 level, closer to 3-week tops, and finally moved past the 1.4100 handle following the release of stronger-than-expected Halifax UK HPI. The index came in to show a rise of 1.5% in March, marking the fastest gain since August last year and provided a minor boost to the British Pound. 

The up-move, however, stalled near the 1.4115-20 hurdle amid a modest US Dollar strength, supported by a goodish pickup in the US Treasury bond yields and hopes that a full-blown US-China trade war could be averted.

Moving ahead, investors this week will confront the release of manufacturing/industrial production data from the UK, which along with the latest FOMC meeting minutes and the latest US consumer inflation figures might provide some fresh directional impetus.

In the meantime, the pair seems more likely to stabilize around the 1.4100 handle and enter a consolidation phase in absence of any major market moving economic releases from the US.

Technical levels to watch

A follow-through retracement below 1.4080 level is likely to accelerate the fall back towards 1.4040 before the pair eventually head back towards retesting the key 1.40 psychological mark en-route 50-day SMA support near the 1.3975-65 region.

On the upside, 1.4115-20 area now seems to have emerged as an immediate resistance, above which the pair seems all set to aim towards reclaiming the 1.4200 handle with some intermediate resistance near the 1.4255-60 region.
 

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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