FXStreet (Mumbai) – The British pound shed some gains and retraced back to 1.54 handle versus the US dollar in the mid-European session. The GBP/USD pair struggles to hold above 1.5400, having faced rejection at key 1.5440 levels, as the greenback stalls its corrective slide and consolidates versus its major peers ahead of a data-empty American session.
GBP/USD drops from 1.5437 highs
The GBP/USD pair 0.17% higher at 1.5407 having previously posted session highs at 1.5437. The cable erased partial gains as traders resorted to profit-taking after the major failed to breach the critical resistance placed at 1.5440 levels.
Moreover, a halt in the US dollar downslide across the board also weighs on GBP/USD. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades -0.28% lower at 97.11, retreating from session lows reached at 97.01.
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.
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)