FXStreet (Mumbai) – The GBP/USD pair quickly recovered to 1.55 levels after having dropped to a low of 1.5485 on broad based USD strength.
Trades above 50% fib level
The pair managed to move back above 1.5491, which is the 50% retracement of the 1.5819-1.5162. The drop in the EUR/USD pair in early Europe triggered a quick fire drop in the GBP/USD from 1.5520 levels to 1.5485, before moving back to 1.55.
The immediate focus would be on the sentiment in the European stock markets. The Euro Stoxx 50 futures are trading flat in the early session. Meanwhile, the UK public sector net borrowing figures could dominate wires, but may not lead to big moves in Sterling.
GBP/USD Technical Levels
The immediate resistance is located at 1.5530 (100-DMA), above which gains could be extended to 1.56 levels. On the other side, support is located at 1.5491 (50% of 1.5419-1.5162) and 1.5460 (10-DMA).
(Market News Provided by FXstreet)