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GBP/USD steadies below 1.55

FXStreet (Mumbai) - The British pound erased most losses and trades in a flat-lining against the US dollar in the European session, with GBP/USD trading almost unchanged just ahead of 1.55 handle amid a holiday-thinned European markets with no fresh triggers set a clear momentum for the major. Markets now await UK’s second estimate GDP figures due later this week for fresh impetus on the major.

GBP/USD recovers from 1.5465 lows

The GBP/USD pair trades flat at 1.5493, having previously posted session lows at 1.5465. The cable is seen struggling around 1.55 barrier and trades modestly flat London trading desks remain closed on Monday due to holidays, leaving only electronic trading active, which results in very low liquidity and volatility.

Meanwhile, the upside remains capped on the back of broad based US dollar strength backed by upbeat US inflation data and Fed’s Yellen’s comments. The dollar index which measures the greenback’s strength against its major peers, trades near session highs at 96.54, recording a 28% gain on the day.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5525 (May 8 High) above which gains could be extended to 1.5591 (May 20 High) levels. On the flip side, support is seen at 1.5465 (Today’s Low) below which it could extend losses to 1.5400 levels.

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