GBP/USD tests Wednesday’s high and retreats

FXStreet (Mumbai) – The bid tone surrounding the GBP keeps growing bigger in the European session, now driving GBP/USD further towards the mid-point of 1.48 handle.

GBP/USD ignores lower FTSE

The GBP/USD pair trades 0.09% higher at 1.4831, quickly retracing from fresh session highs reached at 1.4845 last minutes. The major stalled its consolidation and broke to the upside as the GBP bulls extend the corrective rally from eight-month lows and liquidate their positions on the last of 2015 trade.

Moreover, markets ignored the weakness in the London stocks and continued to favour the pound in thin trades, which exaggerate the intraday volatility and underpins the upside. Meanwhile, the focus remains on a minor-recovery witnessed in oil prices and the upcoming US economic releases for further momentum.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4849 (Dec 30 High), above which 1.4865/74 (1h 100 & 200-SMA) would be tested. On the flip side, support is seen at 1.4800 (round number) below which it could extend losses to 1.4787 (Dec 29 Low).

The bid tone surrounding the GBP keeps growing bigger in the European session, now driving GBP/USD further towards the mid-point of 1.48 handle.

(Market News Provided by FXstreet)