GBP/USD: Off lows but weak around 1.5570

FXStreet (Mumbai) - The GBP/USD pair recovered from the session low of 1.5540 partly due to the weakness seen in the EUR/GBP cross.

GBP/USD - Back above key Fib levels

The is back above 1.5566, which is the 38.2% Fib retracement of the plunge from 1.7190 to 1.4564. A weaker-than-expected UK core CPI at 0.9% in May weighed over the British Pound, taking the pair lower to 1.5540 levels. However, the disappointing Zew survey indices in the Eurozone led to a minor sell-off in the EUR/GBP pair, thereby lending support to the GBP/USD pair.

Ahead in the day, the fresh offers could come-in if the US housing data manage to surpass market expectations. In the meantime, action in the EUR/GBP cross could continue to guide the movement in the pair.

GBP/USD Technical Levels

The immediate support is seen at 1.5566, under which the pair could target the daily low at 1.5540. On the flip side, a break above 1.56 could see the pair re-test 1.5630.

EUR/GBP ignores Zew survey data

The EUR/GBP pair remained largely unresponsive to the weaker-than-expected German and Eurozone Zew survey index data.
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GBP/USD might see additional gains above 1.5590 – FXStreet

Valeria Bednarik, Chief Analyst at FXStreet, notes GBP/USD needs a recovery above 1.5590 to see additional gains towards 1.5635 and 1.5670.
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