FXStreet (Mumbai) – The British pound extends its gradual ascent versus the US dollar in the European session, with GBP/USD trading firmly above 1.54 handle, as the recent strength in the US dollar underwent a slight correction. While most of the upcoming moves are going to be US driven due to lack of incentives on the UK front.
GBP/USD supported above 1.5400
The GBP/USD pair 0.28%% at 1.5424, having posted fresh session highs at 1.5437 some minutes ago. The cable firmed this session largely on the back of a generalized weakness seen in the US dollar amid a data-empty trading session.
Meanwhile, all eyes are on the UK government as it will present its legislative program, including the EU referendum plans, in a speech delivered by Queen Elizabeth II at the state opening of Parliament.
Valeria Bednarik, chief analyst at FXStreet notes, “In the 4 hours chart the price stalled right at its 200 EMA at 1.5353 usually a strong dynamic support, whilst the 20 SMA gained bearish slope above the current price. The technical indicators however, have lost their downward strength and point for a limited upward corrective movement near oversold levels. Nevertheless, as long as the price holds below the mentioned 1.5440 level, the downside is favored towards the 1.5260 level.”
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5479 (May 26 High) above which gains could be extended to 1.5500 levels. On the flip side, support is seen at 1.5378 (Today’s Low) below which it could extend losses to 1.5325 (April 29 Low) levels.
(Market News Provided by FXstreet)