GBP/USD: bulls taking back control for 1.44 handle

GBP/USD has been in a series of daily declines of late, but bulls are back in charge today.

GBP/USD rallied onto the 1.44 handle and penetrated the 50 sma on the hourly time frames on a strong decisive move with the dollar weakening across the board. The U.S. has seen some poor data in the Empire State's manufacturing data missing expectations in a large scale at -9.02 vs 6.50 expected and 9.56 prior.

Elsewhere, oil has rallied along with industrial metals along with the S&P making a comeback after last week's poor performances. Meanwhile, Brexit fears could keep a lid on further advances towards 1.45 territory.

GBP/USD levels

Analysts at Commerzbank explained that the market remains offered intraday while capped 1.4545. "No great bias here, but it is possible that this is a return to point of break out, however, we also recently charted a key day reversal to the downside on 3 rd May, so we are in charting limbo – although we are biased to the downside, who added, "Only a close below 1.4319, the 55 day ma will the chart picture start to deteriorate to leave the 1.4180 2 month uptrend exposed. Initial resistance is found 1.4545 ahead of 1.4665. Only a rise and daily close above 1.4695 will neutralise our outlook (not favoured) and trigger a move to at least 1.4830, the 200 day ma."