GBP/USD: Bulls fight back control, rises to 1.5360

By FXStreet FXStreet (Mumbai) – The GBP/USD pair wiped-out losses and jumped back into the green zone in the European afternoon, as the British pound managed to recover lost ground somewhat amid broad based USD sell-off on persisting risk aversion.

GBP/USD bounces-off 1.5311

The GBP/USD pair trades 0.10% higher at 1.5356, recovering from fresh session lows hit at 1.5311 after UK PMI release. The major attempts a recovery from lows and edged higher in a bid to conquer 1.5400 levels once again as markets continue to dump the greenback amid worries that China slowdown fears may push back Fed rate hike bets this year.

However, the renewed attempt to the upside seems to be capped as the latest UK manufacturing PMI print weighs on the investors’ sentiments. In August, the Markit/CIPS PMI measure fell to 51.5, down from last month’s 51.9, and below expectations of a 52.0 reading.

Meanwhile, focus now shifts to the upcoming set of US manufacturing PMI readings which may provide further insights into the GBP/USD trading.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5408 (Today’s High) above which gains could be extended to 1.5437 (Aug 31 High) levels. On the flip side, support is seen at 1.5311 (Today’s …read more

Source:: FX Street