GBP/USD testing lows near 1.5230

FXStreet (Mumbai) - GBP/USD remains in red during the European session, hovering close to fresh session lows as the US dollar managed to reverse losses against its major competitors following a sudden sell-off sparked by some random rumour. While Moody’s review of the UK economy also weighs on the major.

GBP/USD back on 1.52 handle

The GBP/USD pair trades -0.27% lower at 1.5232, retracing from 1.5222 lows. The cable remains pressured on the back of a recovering US dollar across the board, emerging stronger from the stronger USD concerns-backed drop. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, recovered losses and trades flat at 96.36.

Meanwhile, markets also remain on the side lines amid a data-light European session with UK’s economy review by Moody’s adding to further downside in GBP/USD. Moody’s maintained an upbeat UK growth forecasts, although the rating agency highlighted that Britain’s high debt burden remains a key weakness.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5306 (Today’s High) above which gains could be extended to 1.5371 (June 5 High) levels. On the flip side, support is seen at 1.5200 below which it could extend losses to 1.5188 (June 5 Low) levels.

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