• 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.