GBP/USD breaks below 1.5300

FXStreet (Mumbai) – GBP/USD fell into red in the European morning, having faced rejection at 1.5540 levels, largely on the back of a retreat in the US dollar against its major rivals ahead of the key US Q1 GDP data.

GBP/USD drops from 1.5314

The GBP/USD pair -0.12% at fresh session lows of 1.5309, retreating from 1.5343 highs. The cable erased gains and turned in red mainly driven by sterling weakness following downbeat UK GDP figures released on Thursday.

The economy grew 0.3% in Q1 as against Q4 2014 the report confirmed an earlier estimate, as weak services and a bigger trade gap curbed momentum.

Moreover, a minor pull back seen in the US dollar after keeping losses almost throughout the Asian session also drags the GBP/USD lower.

Later in the day, markets will focus on the US GDP revision which is expected to show a steep 0.9% contraction in output. While consumer sentiment and Chicago PMI data also will be closely watched.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5343 (Today’s High) above which gains could be extended to 1.5400 levels. On the flip side, support is seen at 1.5259 (May 28 Low) below which it could extend losses to 1.5200 levels.

GBP/USD fell into red in the European morning, having faced rejection at 1.5540 levels, largely on the back of a retreat in the US dollar against its major rivals ahead of the key US Q1 GDP data.

(Market News Provided by FXstreet)