FXStreet (Mumbai) – The bid tone in the US dollar strengthened, taking the GBP/USD pair to a low of 1.5734 after Fed’s Powell suggested rates could be lifted as early as September.
USD strengthens on rate hike bets
The sudden spike in the USD was triggered by the hawkish comments from Fed’s Powell. The policymaker said that a percentage point rate hike this year is possible in case the economy grows as anticipated.
Powell’s comments overshadowed the weaker-than-expected US durable goods orders, which fell 1.8% in May largely due to a drop in the volatile aircraft category.
GBP/USD Technical Levels
The pair currently trades at 1.5738 with the immediate support seen at 1.57, followed by another support at 1.5640. On the other hand, a break above 1.5750 could see the pair recover to 1.5780 levels.
(Market News Provided by FXstreet)