GBP/USD extends recovery from 8-month low

By FXStreet FXStreet (Mumbai) – The recovery in the GBP/USD pair regains lost momentum and keeps pushing higher towards the mid-point of 1.49 handle ahead of Europe open.

GBP/USD trades above daily pivot

The GBP/USD pair trades 0.26% higher at 1.4941, within a striking distance of the fresh session highs printed at 1.4950 in the last hour. The cable extends its overnight recovery, having found renewed bids near 1.4885 region, on the back of the ongoing weakness in the US dollar after the sold rise seen yesterday.

The cable faced a double whammy in the previous session and fell to fresh eight month-lows at 1.4865 after the odds of the BOE raising rates next year dropped on lower wages and inflation outlook. Moreover, looming Brexit concerns and the Fed hike-backed sharp USD rally also weighed heavily on the major.

Meanwhile, markets now await the European open for fresh cues on the pair in absence of no economic news from the UK docket.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4958 (1h 50-SMA), above which 1.5004 (Dec 17 High) would be tested. On the flip side, support is seen at 1.4909 (1h 20-SMA) below which it could extend losses to 1.4886 (daily low).
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Source:: FX Street