GBP/USD: Supply caps minor-recovery at 5-DMA

Dhwani Mehta FXStreet

A tepid-bounce witnessed in the GBP/USD pair faced rejection at 5-DMA, now driving the rate slightly lower back around the daily pivot.

GBP/USD wavers above 1.2200

The cable ran into offers at 5-DMA barrier, despite the retreat in the US dollar against its main peers from near eight-month tops, as risk-on trades appear to have eased a bit amid stalled rally in the Asian stocks and subdued oil prices.

The GBP/USD pair trades -0.14% at 1.2222, having posted daily high at 1.2239 and day’s low at 1.2210. While the USD index moved further away from near fresh eight-month peaks to now trade around 98.73, still up +0.09% so far.

Markets now look forward to the US economic releases due later on the day for fresh impetus amid a data-empty UK docket. Further, BOE Governor Carney’s speech will hog the limelight later in the American morning.

BOE Carney is scheduled to testify about the economic consequences of the Brexit Vote before the House of Lords Economic Affairs Committee, in London.

GBP/USD Levels to consider

The pair finds immediate resistances placed at 1.2263 (Oct 21 high), 1.2300 (Oct 20 high) and 1.2334 (Oct 19 high). While supports are lined up at 1.2210 (daily low) and 1.2154 (daily S2) and below that at 1.2134 (Oct 17 low).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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