GBP/USD consolidated on thin ice

FXStreet (Guatemala) - GBP/USD is currently trading at 1.4641 with a high of 1.4651and a low of 1.4628.

GBP/USD has support at 1.4590 but like its euro counterpart in Europe, it faces head winds and is under pressure in a strong dollar environment. 1.4720 was a key support that eventually gave way last week in a sell off the triggered stops and a long squeeze to the aforementioned 1.4590 mark. A minor recovery was accomplished by brave bulls buying in to oversold territory and weakness in to the broad bearish trend.

The US dollar took flight on the back of hawkish FOMC minutes that came as a surprise to the market given the tone in Yellen's accompanying statement post the Feds decision and also against a back drop of dismal jobs data n the previous Non farm payrolls. Technically, as Kare Jones, chief analyst at Commerzbank noted that GBP/USD has sold off aggressively from 1.50, and ha taken out the 1st April low at 1.4741. "Our longer term target is the 1.4291/29 area – this is where the 78.6% Fibonacci retracement of the 2009 uptrend meets the 2010 low."