FXStreet (Mumbai) – Fresh demand emerged for the GBP/USD pair following the dismal PMI-led dip to 1.4330 region and the major recovered losses in a bid to regain 1.44 handle.
GBP/USD sees an 80-pips recovery
The GBP/USD pair drops -0.19% at 1.4406, recovering quickly from fresh session lows struck at 1.4327 in the last hour. The cable staged a solid comeback from daily lows, mainly on a short-covering rally as the major clung to the strong support of 5-DMA then placed at 1.4330.
However, the recovery looks fragile amid renewed sell-off in the oil prices and heavy losses seen in the European equities, which curbs the appetite for the risk currency GBP. While the latest softer UK construction PMI report also continues to weigh on the GBP/USD pair.
Later today, in absence of significant US economic data, the major will continue to track the sentiment on the Wall Street and the oil price movement.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4436/48 (Daily & Feb 1 High), above which 1.4500/06 (round number/ daily R1) would be tested. On the flip side, support is seen at 1.4334/18 (5-DMA/ 1h-50-SMA) below which it could extend losses to towards 1.4250/ 24 (psychological levels/ Feb 1 Low).