GBP/USD halts its recovery, retraces to 1.4840

FXStreet (Mumbai) - GBP/USD stalled its recovery mode and fell back deeper in red towards 1.48 handle during the mid-European session as renewed buying the greenback coupled with worries over UK’s election keeps the cable pressured.

GBP/USD rejected at 1.4867

The GBP/USD pair trades lower at 1.4832, down -0.41% on the day, retreating from 1.4867 levels reached earlier this session. The cable remained in losses mainly driven by a a fresh bout of buying seen in the US dollar as traders continue to mull Fed Yellen’s comments over the weekend stating the rate hike could very well become a reality this year which boosted the USD bulls.

Moreover, markets also remain wary as the official pre-election campaign started today just six weeks ahead of the poll, scheduled for the first Thursday in May which continues to undermine the British pound.

Meanwhile, upbeat UK’s mortgage approvals data also failed to lift the GBP/USD pair as markets shift their attention on US macro data while Greece remains in focus.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4866 (5-DMA) above which gains could be extended to 1.4895 (20-DMA) levels. On the flip side, support is seen at 1.4800 levels below which it could extend losses to 1.4728 (March 15 Low) levels.

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