GBP and USD Trading

The pair of GBP and USD dropped within the 100-hour moving average during the last 11 hours in trading sessions. The moving average came in at 1.4792 while low for that day was 1.47944. The level rebounded in morning trading at London. Traders banked on this level to delineate and reduce risks. This gamble paid off for them.

Corrective high off that low (as traders from New York joined the trading) was more than the 200-hour moving average at 1.4924 against the 1.4900 for the 200-hour median.

However, this extension was rejected due to volatility. 50 percent of this also came close to the 200-hour MA (1.4999). Meanwhile, GBP and USD pulled away from a low of 1.4796 to 1.4895 in euro region trading although it was still down by 0.58 percent.

The UK pound sterling declined to practically five-year lows versus the US dollar on Wednesday following the declaration made by the Office for National Statistics (United Kingdom) that the jobless rate remained at 5.7 percent during the first three months which failed expectations for a decrease of 5.6 percent.

Likewise, minutes of the policy meeting of the Bank of England pointed out that all members of the Monetary Policy Committee preferred to maintain interest rate at 0.5 percent along with the £375 billion asset-purchasing agenda. The UK pound was higher versus the shred currency as EUR and GBP stumble 1.18 percent to 0.7168.