GBP/USD (current price: 1.4360)
The Pound lost ground against most of its peers on Friday following the volatile reversal of Thursday. The Bank of England’s cautious view and the recent negative releases weighed on the currency that has been enjoying a modest rally since February. The rising trend channel is still intact as the pair is getting close to the strong support near 1.43 and the advancing trend-line near 1.4250. The declining 200-day MA is currently at 1.4750, serving as overhead resistance for GBP/USD.
Our assessment: Cable could still be headed lower for a few sessions, but the 1.4250-1.4300 zone should provide enough support for, at least, a short-term bounce.
