GBP/USD extends recovery and prints fresh highs at 1.3935
- DXY failed to hold to gains, boosting recovery in GBP/USD.
- Cable flat for the day, back above the 20-day SMA, suggesting no clear bias.
The GBP/USD erased losses on Tuesday and is hovering around 1.3915/20 around the same level is closed on Monday. The chart shows no clear direction as US dollar strength lost momentum amid lower US yields and a recovery in Wall Street.
The Dow Jones is falling by 0.35% and the Nasdaq 0.95%, far from the bottom it reached on the futures market but off highs. The US 10-year yield is moving sideways between 1.41% and 1.44%.
From the bottom to a doji
Cable bottomed on European hours at 1.3858, the lowest level since February 18. Later, as markets across the world moved off lows, GBP/USD rose back above 1.3900. Recently reach 1.3934 and then pulled back modestly.
A daily close around the current level would end up in a doji candle that would suggest some consolidation ahead. If it ends under 1.3850, more losses seem likely.
For the next hours, the immediate support stands at 1.3900, followed by 1.3865. On the upside, resistance might be seen at 1.3935 and then 1.3975.