GBP / USD trapped in range around 1.3500

Juan Luis

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May 18, 2018
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The [URL deleted] GBP / USD extended its consolidation price action and remained confined in a narrow trading band near the key psychological mark of 1.3500, although in the European morning it reached daily highs near 1.3530.

After the two good round trips yesterday, led by holders on the Brexit, the pair seemed to stabilize around 1.3500 and had a rather moderate reaction to the encouraging publication of the manufacturing index of the Philadelphia Fed.

Against the background of the recent moderation of the BoE, the resurgence of concerns about Brexit kept the pound sterling lagging behind. However, a moderate action around the yields of the US Treasury bonds forced the bulls of the US dollar to take a breather, which seems to be any immediate fall for the pair.

In the absence of major economic publications in the market, operators are likely to interpret the speeches of influential FOMC members, Loretta Mester, president of the Cleveland Fed, who will speak shortly, and Fed governor Lael Brainard , scheduled later during the beginning of the American session.

Technical levels GBP / USD

Weakness below the 1.3500 zone could extend to the 1.3480 level before the pair eventually retreats to a 2 week trading range support near 1.3450.

On the positive side, the 1.3555 / 60 region (200 day simple moving average) now seems to have emerged as an immediate resistance, following a strong barrier near the 1.3600-1.3610 zone.
 
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