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GBP/USD is too volatile in the morning

FXStreet (Moscow) - http://www.fxstreet.com/technical-studies/currencies/gbpusd/">GBP/USD staged a rebound from the start of Asia reaching 1.6682 session high from 1.6667 at the open.

GBP hides something behind

As we see it moving higher, it’s getting clearer the pound is still resilient relative to the scale of the euro slide. It only supports our understanding there is something bigger behind the market reactions, and most probably it’s just Vodafone deal flows. If we are right, the pair will be bid up till March, 4, and keeps ignoring any negative factors. Every move lower will be followed by the buyers entering the market with longs. Thus, the recovery is not ruled out today with initial target at 1.6709 resistance level.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6665, with support below at 1.6628, 1.6584 and 1.6547, with resistance above at 1.6709, 1.6746, and 1.6790. Hourly Moving Averages are largely neutral, with the 200SMA at 1.6683, and the daily 20EMA bullish at 1.6587. Hourly RSI is neutral at 49.

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