GBP/USD hits fresh session lows below 1.4860

FXStreet (Mumbai) - GBP/USD drops to fresh session lows in the European morning, bouncing-off stiff resistance at 1.4910 levels largely on the back of fresh demand for the US dollar while UK’s elections uncertainty continue to be a drag on the pound.

GBP/USD drops from 1.4888

The GBP/USD pair trades -0.30% at fresh session lows of 1.4862, sharply retreating from 1.49 handle. The GBP/USD pair dipped further in to red as a fresh bid wave caught the US dollar, taking it to fresh three day highs across the board.

The US dollar index which measures the relative strength of the greenback against a basket of six major currencies jumps to fresh 3-day highs at 98.53, up 0.35% on the day.

Meanwhile, markets will now shift their focus towards tomorrow’s BOE minutes for further momentum on the pair in absence of no major data later in the day.

Valeria Bednarik, chief analyst at FXStreet explains, “The pair maintains a short term bearish tone, as the 1 hour chart shows that the price develops below a bearish 20 SMA, whilst the technical indicators head lower below their mid-lines."

"In the 4 hours chart the price broke below its 20 SMA and the 200 EMA, both converging in the 1.4910 region acting now as the immediate intraday resistance, while the technical indicators head lower around their mid-lines, supporting the shorter term view."

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4909 (Today’s High) above which gains could be extended to 1.4971 (April 16 High) levels. On the flip side, support is seen at 1.4810 (April 16 Low) below which it could extend losses to 1.4774 (April 2 Low) levels.