17 May GBPUSD Technical Outlook: GBPUSD reverses early gains


The GBP/USD pair surrendered majority of its early gains and quickly retreated back to the 1.3500 neighborhood. What are traders advised to do at this time? Read on as this 17 May GBPUSD Technical Outlook explains.

17 May, OctaFX The latest leg of a sudden drop from an intraday high level of 1.3570 could be attributed to the latest Brexit headlines, wherein the UK PM office dismissed the report, which said that Britain is ready to stay in the customs union beyond 2021.

USD rebound/surging US bond yields add to the downward pressure 

This coupled with a modest pickup in the US Dollar demand, supported by the ongoing upsurge in the US Treasury bond yields, further collaborated to the pair’s sharp fall over the past couple of hours.

Looking at the broader picture, the pair remains confined within a broader trading range held over the past two weeks and lacks any firm near-term directional bias. Hence, it would be prudent to wait for a decisive break through the trading range before positioning for the pair’s next leg of directional move.

With an empty UK economic docket, any fresh Brexit headlines would drive sentiment surrounding the British Pound ahead of the second-tier US economic releases, due later during the early NA session.

17 May GBPUSD Technical Outlook

Any subsequent weakness back below the 1.3500 handle might continue to find strong support near mid-1.3400s, which if broken might now open room for a resumption of the pair’s prior depreciating slide. 

On the upside, the 200-DMA area, near the 1.3560-70 region, might continue to act as an immediate hurdle and is followed by strong resistance near the 1.3600-1.3610 zone.

Disclaimer

This article about 17 May GBPUSD Technical Outlook was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

Also, speculative trading is a challenging prospect, even to those with market experience and an understanding of the risks involved.

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