FXStreet (Mumbai) – The GBP/USD recovered from the low of 1.5465 to settle once again around 1.55 levels ahead of the US session, which lacks any major first tier data releases.
GBP/USD: Back above 50% Fib retracement
The pair now trades above 50% Fib retracement of the mid-May to end-May plunge – 1.5813-1.5169. The Merkel driven sell-off pushed the cable to a low of 1.5465, although the losses were capped due to the sell-off in the EUR/GBP pair.
The US calendar does not offer major data releases apart from the Michigan confidence index. Consequently, the pair is at the mercy of the overall market’s appetite for the US dollars ahead of the weekend.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5228, above which gains could be extended to 1.5565. On the flip side, a break below 1.5465 could drive the pair to a low of 1.5416.
(Market News Provided by FXstreet)