The GBP/USD pair outperformed the higher-yielding currencies amid deteriorating market sentiment, and wavers above 1.44 handle.
GBP/USD heading towards 1.44 barrier
The GBP/USD pair trades -0.14% lower at fresh session lows of 1.4411, retreating slightly from 1.4439 daily highs, where the 10-DMA intersected. The major finally broke the consolidation phase and gradually resumes the downside as sentiment remains unfavourable towards risk currencies such as the GBP amid crashing global stock markets and tepid-recovery in the oil prices. Japan’s Nikkei slumps almost 6%, while Australia’s ASX closed down nearly 3%.
However, the downside looks limited as the US dollar extends its sell-off against its major rivals, while expectations of positive UK trade numbers also keep the cable slightly buoyed. Later today, the UK docket remains relatively data-light, with the only trade data on the cards. Markets are expecting the total trade deficit to have narrowed further to £3 billion in December from an estimated £3.2 billion a month before.
Besides, BOE MPC member Cunliffe is due to speak about at the British Property Federation Residential Conference, in London.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4439/38 (daily high/ 10-DMA), above which 1.4475/89 (1h 50-SMA/ 5-DMA) would be tested. On the flip side, support is seen at 1.4345/41 (20-DMA/ daily S1) below which it could extend losses to towards 1.4300 (round number).
(Market News Provided by FXstreet)