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Pound on the rebound-check out the GBP/USD

Yesterday the jump back above 104.00 in the USD index (USDX) and corresponding slump in the EUR/USD did the GBP/USD no favours. The UK budget was generally well greeted, but with the usual amount of voter appeal cynicism. That was always to be expected from the press this close to an election. Leaving that aside, it was not a bad outcome and perhaps more normally the pound might have benefitted more than it did, but of course the dollar got in the way of that. So, the GBP/USD fell back to test its 200 day moving average, with a low of 1.2449, reached right on the 4pm London fix. Look, I keep reminding readers how often extremes in either direction will be set at that time. Yesterday was a clear, further example of that. The GBP/USD did rebound into the US close, where it ended the session at 1.2494. It has made some further progress so far today. Resistance still resides at 1.2560 and 1.2589 and support is now at 1.2453, as that is where the 200 day moving average comes into play today. The GBP/USD is currently trading at 1.2516
 

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