FXStreet (Mumbai) – A sudden spurt of buying in the GBP/USD pair waned and the prices erased gains, although remains supported above 1.49 handle.

GBP/USD eyes hourly 200-SMA resistance

The GBP/USD pair trades modestly flat at 1.4922, retreating from fresh session highs printed at 1.4932 last hours. The cable remains slightly bid, although struggles to take out the hourly 200-SMA placed at 1.4938 on the back of sliding oil prices. Moreover, in absence of the UK traders, the upbeat momentum in the major lacks follow-through. The UK markets are closed today in observance of Boxing Day holiday.

Focus now shifts towards a slew of macro updates from the US due tomorrow and on Thursday for fresh incentives on the pair. Tuesday sees a release of US goods trade balance, S&P/CS Composite-20 HPI y/y and CB Consumer Confidence data. While the usual weekly jobless claims from the US will be lined up for release on Thursday.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4938 (1h 200-SMA), above which 1.5004 (Dec 17 High/ 20-DMA) would be tested. On the flip side, support is seen at 1.4909 (daily low) below which it could extend losses to 1.4888/83 (1h 100 & 50-SMA).

A sudden spurt of buying in the GBP/USD pair waned and the prices erased gains, although remains supported above 1.49 handle.

(Market News Provided by FXstreet)

By FXOpen