FXStreet (Mumbai) – The GBP/USD pair extends its recovery from three-month lows for the second straight session on Tuesday and is now breaking higher above 1.54 handle amid broad based US dollar weakness.
GBP/USD extends gains from 1.5335
The GBP/USD pair trades 0.79% higher at fresh weekly highs of 1.5404, accelerating gains from above 1.53 handle. The bid tone surrounding the GBP/USD pair keeps growing bigger as we progress towards the mid-European session as the investors continue to reduce their USD longs amid increased chatter of diminishing odds for Sept rate hike.
The cable remains boosted amid lack of relevant macro data on either side of the Atlantic today, meaning the prices are expected to be driven by the ongoing market sentiment.
Markets now turn their attention towards the latter half of the week especially the ‘Super Thursday’ for further cues on the major. While Wednesday’s industrial production as well as trade balance data from the UK will be closely watched.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5437 (Aug 31 High) above which gains could be extended to 1.5509 (Aug 27 High) levels. On the flip side, support is seen at 1.5335 (Aug 31 Low) below which it could extend losses to 1.5272 (Today’s Low) levels.
(Market News Provided by FXstreet)