GBP/USD rejected at 50-DMA, drops below hourly 200-MA

GBP/USD was rejected at 50-DMA level of 1.4278 in Asia following bears strengthened their hold and pushed it below 1-hr 200-MA located at 1.4254 levels.

Trades below hourly 50-MA

The spot also sits below its hourly 50-MA level of 1.4249. Asian equities turned risk-off, pushing the Yen higher and other risk assets/currencies lower. Cable too has been pulled lower by sell-off in GBP/JPY.

The immediate focus is on the UK services PMI report, which is expected to show the dominant sector performance ticked higher in March. At the time of writing, the pair traded around 1.4242 levels.

GBP/USD Technical Levels

The immediate hurdle is noted at 1.4254 (1-hr 2-MA), above which prices could challenge 50-DMA hurdle at 1.4278. A break higher would expose 1.4330 (23.6% of 1.5930-1.3835). On the other hand, a break below 1.42 would open doors for a drop to 1.4165 (23.6% of 1.5230-1.3835). Below the same next major support is seen at 1.4079 (Jan 21 low).