GBP/USD: Up, down, all around 1.3500 on the day

Technical Analysis

Author: Justin Low | gbpusd

Cable pivots around the 1.3500 figure level in trading today

Sterling is the only major currency weaker than the dollar on the day as bulls are finding it tough to build conviction to break free of 1.3500 in GBP/USD. The dollar is retracing overnight gains, but cable seems to be the exception to that at the moment.

Offers seen around 1.3520 is helping to keep the pair pinned down for the moment, but resistance in the form of the 100 and 200-hour MAs (red and blue lines) near 1.3540 is also helping to add a further cap to the pair for the time being.

Looking at the bigger picture, the downside move yesterday stalled near the January low at 1.3458 so that will be the first key support level to look out for. After that will be the 50.0 retracement level @ 1.3429 for added support in the pair followed by bids at 1.3400.

The market is lacking a catalyst so far today for any move, with the dollar retracement being the only notable action as yields are failing to breakout further after yesterday's jump. So, look out for those levels mentioned as traders look to build bias in the pair.


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