GBP/USD wavers around 1.48

FXStreet (Mumbai) - GBP/USD rebounded from session lows and rose back above 1.48 handle during the European session as traders digest UK Government’s announcement that it is going to raise the minimum wage for Britain's lowest-paid workers.

GBP/USD bounces off lows below 1.4800

The GBP/USD pair trades lower by -0.17% at 1.4805, gradually crawling towards fresh session highs at 1.4845. The cable remains in red, although recovering partial losses after the UK's announcement that the national minimum wage will be increase by 3% to a new rate of £6.70 per hour, effective from October 2015, pulled the sterling away from lows.

However, GBP/USD remains pressured despite broadly weaker US dollar as increased talks of delayed BOE rate hike continues to keep a lid on prices.

Meanwhile, traders now await US economic releases for fresh cues on the pair, in absence of any GBP data for rest of the session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4845 (Today’s High) above which gains could be extended to 1.4897 levels. On the flip side, support is seen at 1.4773 (Today’s Low) levels below which it could extend losses to 1.4728 (March 16 Low) levels.

Gold drops in Euro terms

Gold prices in the EUR terms are down fro the second consecutive session on Tuesday after the ECB data showed the bank’s QE purchases in the last week were well short of the average required to meet the monthly target of EUR 60 billion.
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