FXstreet.com (Barcelona) - GBP/USD has recovered all of its initial losses and currently the pair is trading around 1.4665/75 after rising around 165 pips from 1.4526, in the early European session to 1.4692, intra-day high.
According to Valeria Bednarik, FXstreet.com collaborator, market is under pressure by risk aversion, sentiment is leading the way: Market could well remain uncertain and risk aversion high not only because the swine flu but also ahead of the U.S. banks stress test to be released next May 4th. Fears of more federal funding to avoid system crash, could keep both dollar and yen strong all along the week.
Related Cable, Bednarik says: Turning bullish in 4 hours charts, the pair is fighting the key 1.4660 zone, that although consider tough, could well get broken in the next hours, as indicators support further rises, with CCI cutting the 0.00 line and momentum turning higher. Thus, upside will remain limited in the pair as bigger time frames gave no clear trend bias. Resistances if 1.4660 is cleared, will be at 1.4690/1.4710 zone and above 1.4745. Failure to break, could take the pair back close to 1.4620 and above, 1.4560 zone.
For more information, read our latest forex news.