FXStreet (Mumbai) – GBP/USD extends its upward trajectory for the third straight session in the European morning; with the gains mainly fuelled by broad USD weakness as traders now turn focus towards manufacturing and industrial production data from the UK due later shortly.
GBP/USD firmer on softer USD
The GBP/USD pair trades 0.22% higher at 1.5420, retracing from 1.5433 highs. The cable continues its upsurge after the US dollar gave back JOLTS data led gains and slipped in red today amid a generalized JPY buying, drowning USD/JPY lower by nearly 200 pips.
The major remains lifted despite expectations of a slowdown in UK industrial and manufacturing production. Markets expect both the manufacturing and industrial production to fall from the positive March readings of 0.5% and 0.4%, respectively, to a fairly meagre 0.1% for both measures for the beginning of Q2.
Later in the day, markets will closely watch UK’s Chancellor George Osborne’s Mansion House speech which is likely to focus on the UK’s banking sector.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5442 (June 4 High) above which gains could be extended to 1.5500 levels. On the flip side, support is seen at 1.5369 (Today’s Low) below which it could extend losses to 1.5302 (June 4 Low) levels.
(Market News Provided by FXstreet)