FXStreet (Mumbai) – GBP/USD found good support just ahead of 1.5700 levels and recovered losses in the European morning, as markets now shift focus towards UK retail sales data due later in the session.
GBP/USD supported at 1.5807
The GBP/USD pair trades flat at 1.5835, attempting a bounce towards fresh multi-month highs reached at 1.5851 in Asia. The cable recovered losses as traders remain on the side lines ahead of retail sales data from the UK economy which is anticipated to show a weaker reading today. A Growth of 0.2% is expected when measured m/m, while 5.0% is expected on an annual basis.
The major bounced-off lows at 1.5807 and rebounded higher largely on the back of persistent USD weakness across the board which lends a helping hand to the GBP/USD pair. The US dollar index, the virtual gauge of the greenback’s relative strength trades -0.19% lower at 94.30 levels.
On Wednesday, the cable jumped to fresh seven month highs beyond 1.58 barrier after the UK economy saw a positive sign after the latest wages data showed that salaries rose by 2.7% in the three months to April, the biggest monthly rise in over four years. The UK’s jobless rate remained at its lowest level since 2008 in April at 5.5%.
Later in the day, markets will closely a host of crucial data releases from the US which may provide further momentum on the pair.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5851 (Today’s High) above which gains could be extended to 1.5900 levels. On the flip side, support is seen at 1.5807 (Today’s Low) below which it could extend losses to 1.5726 (May 14 Low) levels.
(Market News Provided by FXstreet)