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GBP/USD regains 1.5450

FXStreet (Edinburgh) - The sterling is looking to recover part of yesterday’s sell-off, pushing GBP/USD back to the mis-1.5400s area.

GBP/USD firmer above 1.5400

The pair is returning from multi-week tops around 1.5560 on Thursday, although the re-emergence of the dollar dragged it to test the boundaries of 1.5400 the figure at the end of the NA session. In the meantime, rate hike expectations and a solid performance of the UK economy remain the main drivers behind GBP.

Absent data in the UK, the US dynamics and the risk appetite trends will show the way on Friday. US releases include the Reuters/Michigan index, Chicago PMI and some Fedspeak.

GBP/USD key levels

At the moment the pair is up 0.19% at 1.5433 with the next hurdle at 1.5500 (psychological level) ahead of 1.5554 (high Feb.26) and finally 1.5588 (2015 high Jan.2). On the flip side, a breakdown of 1.5395 (low Feb.26) would expose 1.5333 (low Feb.23) and finally 1.5323 (21-d MA).

Greenspan: Effective US demand extraordinarily weak – Rabobank

The Rabobank Team reviews yesterday’s US data release and further shares Alan Greenspan’s comments on the economy.
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