GBP/USD –Confluence of resistance intact despite weak US data

GBP/USD failed to take out confluence of technical resistance around 1.4250 (hourly 50-MA+ 50-DMA + 1.4252-38.2% of 1.4669-1.3835) despite dismal US retail sales release.

Hovers around 1.4240

Prices clocked a post data high of 1.4255 before falling back to trade around 1.4240 levels. Retail sales unexpectedly dropped 0.3% in March, however, previous month’s figure was revised higher and that may have come to dollar’s rescue.

Meanwhile, increased speculation that Brexit may force BOE to cut rates is also keeping the Pound under pressure. Ahead in the day, the pair is likely to take cues from US equities. Action in the UK gilt yields ahead of tomorrow’s BOE rate decision could also come into play.

GBP/USD Technical Levels

A break above immediate hurdle around 1.4250 as noted above would open doors for 1.43-1.4330 (23.6% of 1.5930-1.3835) beyond which 1.4348 (previous day’s high) could be put to test. On the other hand, a break below 1.42 would expose 1.4182 (hourly 200-MA) – 1.4176 (hourly 100-MA). Acceptance below the same is necessary to crowd out bulls and trigger further drop to 1.41 levels.