GBP/USD bounces off lows, regains 1.4470

After briefly bottoming out in the 1.4450 area, GBP/USD has managed to regain some pips to the 1.4465/70 band.

GBP/USD lower on USD-buying, Gilts

The daily decline in GBP seems to have found some support in the mid-1.4400s for the time being, amidst a renewed environment favouring the US dollar and decreasing Gilts in the UK money markets.

In the data space, UK’s trade deficit has narrowed more than expected during April to £10.53 billion vs. £11.2 billion forecasted and March’s £10.65 billion. Across the Atlantic, Initial Claims are only due later.

GBP/USD levels to consider

As of writing the pair is retreating 0.28% at 1.4463 and a break below 1.4422 (55-day sma) would aim for1.4352 (low Jun.6) and then 1.4330 (low May 16). On the other hand, the next resistance aligns at 1.4645 (spike Jun.7) followed by 1.4720 (200-day sma) and finally 1.4744 (high May 6).