Forex: GBP/USD above 1.5150; slows down avrg vol

For a second consecutive day, Cable has taken a break during the session in Asia-Pacific, trapped inside a tiny 20 pip-range for the last six hours between 1.5160 and 1.5180, last at 1.5180, just about 10 pips above its previous opening in the region yesterday. The pair thus reduces its average daily volatility, reaching an 8-month peak between last Friday and Tuesday around 135 pips per day on average in their previous 14 trading days.

With the so-called 'sequester' of the U.S. federal budget taking center stage since 05:00 GMT today, Cable faces the London session ahead with UK Nationwide Housing Prices s.a (MoM) (Feb) at 07:00 GMT, followed by key risk event for the session at 09:28 GMT in the form of UK Markit Manufacturing PMI (Feb), UK Consumer Credit (Jan) 2 minutes later, along with M4 Money Supply, Mortgage Approvals, and Net Lending to Individuals (MoM).

According to Valeria Bednarik, Chief Analyst at Fxstreet.com: “A slightly bearish is present in the hourly chart with price  below 20 SMA and indicators breaking below their midlines,” the analyst says, adding: “The pair however, has a short term support in the 1.5120 area, and needs to accelerate below it to confirm a downside continuation. In the 4 hours chart technical readings remain neutral, with indicators around their midlines and price hovering around a flat 20 SMA,” she concludes.

Valeria finds support levels at: 1.5150, 1.5115 and 1.5070, while resistance levels at: 1.5220, 1.5265 and 1.5300.