FXStreet (Mumbai) – The British pound failed to sustain above 1.59 barrier and slid in the negative territory in the European morning, knocking-off GBP/USD to fresh session lows near 1.5850. The major shaved-off gains and dropped to lows as the USD bulls jumped back in to bids amid a generalized risk-on moods on Greek solution while markets also anticipate an upbeat existing home sales reading from the US which adds to the USD rebound.
GBP/USD faces rejection at 1.5910
The GBP/USD pair trades lower by -0.22% at fresh session lows of 1.5848, moving away from seven month high levels. The cable witnessed a sharp drop of more than 50 pips largely as US dollar staged a strong come back as traders favoured the buck amid re-emergence of risk-on environment as markets are hopeful of a Greek agreement reached today at the EU summit.
The US dollar index, the virtual gauge of the greenback’s relative strength trades 0.17% higher at 94.46 levels, having previously posted session highs at 94.55.
Moreover, expectations that US existing home sales are likely to resume uptrend in May also boosts the greenback, dragging GBP/USD lower. US existing home sales data will be published at 14GMT with expectations of 5.27M additions in June against 5.04M figures booked in May.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5910 (Today’s High) above which gains could be extended to 1.5930 (June 18 High) levels. On the flip side, support is seen at 1.5833 (June 19 Low) below which it could extend losses to 1.5803 (June 18 Low) levels.
(Market News Provided by FXstreet)