Forex Trading: GBP/USD Short-Term Retracement

After a fantastic start to the trading week for the Sterling, some negative economic indicators out of the UK and then the US (namely worse than expected UK GDP and US Consumer Confidence,) has had Cable on the run since the open of the European trading day. Looking at short-term retracement of the move from late last week to yesterday’s high’s we see some interesting technicals appear. The GBP/USD pair has found some good support at the 200 hr moving average, which has defended the pairs depreciation throughout the NY session with the 61.8% retracement of the move below it.

On the topside there is the 21 hour moving average and 38.2% retracement that could resist any attempts to retrace the highs. It is also important to note the 21 day moving average which has supported the pair since the beginning of May is at 1.6368.

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