GBP/USD retesting lows at 1.54, BOE news leak weigh

FXStreet (Mumbai) - The British pound remains heavily sold-off and falls further in to losses against the US dollar in the European morning, knocking-off GBP/USD to fresh two week lows on 1.54 handle, as the USD bulls took the driver’s seat and jumped higher against its major competitors reaching fresh one month highs.

GBP/USD accelerates losses

The GBP/USD pair trades -0.43% at fresh two week lows of 1.5401, retesting 1.54 barrier. The cable was relentlessly offered following the news leak of the Bank of England's (BOE) alleged confidential investigation of the potential impacts of Great Britain's exit from the European Union.

Also, strengthening US dollar across the board on the back of increased 2015 rate hike bets following upbeat US CPI figures and Yellen’s hawkish comments, also keeps GBP/USD pressured.

Meanwhile, markets now await UK’s CBI realized sales figures, the only data for the GBP traders in the session ahead. While NA Session is likely to bring the main market mover in US durable goods orders later today.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5471 (Today’s High) above which gains could be extended to 1.5500 levels. On the flip side, support is seen at 1.5400 below which it could extend losses to 1.5325 (April 29 Low) levels.

USD requires support from fundamentals to enjoy a sustained rebound – BTMU

Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, believes that the recent lower correction in USD was as a result of position adjustment, and the rebound seen now will required support from US data for a sustained upside momentum.
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