GBP/USD fades spike above 1H 200-MA

The GBP/USD printed session high above 1.3393 (above 1-hour 200-MA of 1.3385) before falling back to 1.3380 levels.

Focus on the US 10-year T-yield

The 10-year treasury yield rose to 2.4 percent yesterday, but the follow-through is anything but impressive. As of writing, the yield is trading at 2.39 percent. The exhaustion at the critical resistance of 2.4 percent seems to have put a bid under the GBP/USD pair.

Still, the pair failed to hold above the 1-hour 200-MA seemingly due to the negatively biased 1-hour 50-MA. Ahead in the day, the pair could take cues from the Brexit related news flow and the US housing data.

GBP/USD Technical Levels

Karen Jones, Head of FICC Technical Analysis at Commerzbank, says the intraday Elliott wave counts are conflicting. Jones details the outlook as follows-

"We are unable to rule out a small rebound to the 1.3550 December high. Below 1.3300 continues to hold, below here will be needed to alleviate immediate upside pressure and allow for weakness back to the 1.3184 2016-2017 uptrend. It has recently broken above the 2014-2017 downtrend and this has introduced scope to the 1.3658/71 September high and double Fibonacci retracement, however the break higher has not exactly been dynamic and we are having our doubts that this is a valid break."

"Where are we wrong? The 1.3184 2014-17 uptrend represents the break down point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement."