GBP/USD retreats from 2-week high

GBP/USD clocked a fresh two-week high of 1.3185 on broad based USD selliong before falling back to 1.3140 levels.

Bullish MA crossover

Following this week’s sharp gain, the daily chart shows a bullish 5-DMA and 10-DMA crossover. Unwinding of GBP shorts gathered pace this week after the UK data contradicted predictions of post Brexit gloom and doom.

The spot is currently trading just below 1.3140 levels. UK public sector net borrowing figures due later today could influence the pair.

GBP/USD Technical Levels

A break above Asian session high of 1.3185 could see the spot test supply around 1.3315 (23.6% of 1.5019-1.2789); a level which has acted as a strong hurdle in the post Brexit world. A violation there could force bears to unwind shorts which will open doors for 1.35 handle.

On the lower side, only a break below 10-DMA level of 1.3018 could yield fresh selling for 1.2850 (July 11 low), under which Brexit low of 1.2789 levels could be put to test.