GBP/USD bounces-off lows around 1.4840

FXStreet (Mumbai) - GBP/USD fell to fresh one–week lows below 1.48 handle in the European morning, as traders now gear up for US GDP figures while BOE Carney is due to speak shortly.

GBP/USD below 5-DMA

The GBP/USD pair trades lower at 1.4837, down -0.36% on the day, retreating from fresh session lows posted at 1.4822 levels some minutes ago. The cable dropped this morning mainly driven by solid gains in the US dollar across the board, supported by Fed Yellen’s comments over the weekend stating the rate hike could very well become a reality this year which boosted the USD bulls.

The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades higher by 0.19% near session highs at 97.80 levels.

However, losses in GBP/USD are expected to be cushioned as the pound remains underpinned on impressive UK retail sales numbers and BOE Carney’s hawkish comments after his speech on Friday.

Meanwhile, traders now await net lending figures from the UK and major US release in the day ahead while Greece concerns return to the markets.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4866 (5-DMA) above which gains could be extended to 1.4895 (20-DMA) levels. On the flip side, support is seen at 1.4800 levels below which it could extend losses to 1.4728 (March 15 Low) levels.

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