GBP/USD: Recovery capped by 1.5050

By FXStreet FXStreet (Mumbai) – The GBP/USD recovery from fresh multi-month lows lost steam near 1.5050 levels, and the prices erased gains and drifted lower post-European open.

GBP/USD retreats to 1.5030

The GBP/USD pair trades almost unchanged at 1.5033, retracing from fresh session highs reached at 1.5050 in last hours. The appetite for risk currencies such as the GBP waned after the European stocks opened on a bearish note, sending the GBP/UD lower from session tops.

Moreover, the pound remains pressured against the US currency as markets continue to digest the recent dovish comments from BOE rate-setter Vlieghe, who stated that he would want to see stronger economic momentum before a rate lift-off.

On the other side, the US dollar prolongs its winning streak across the board and reached the strongest levels since March this year, as the Fed remains the only central bank likely to raise rates this year.

Data-wise, the GBP traders moved past in-line with estimates UK GDP report and now await the net lending to individuals figures due for release shortly ahead of the UK bank stress results due tomorrow.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5069 (5-DMA), above which 1.5100 (round number) would …read more

Source:: FX Street