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GBP/USD off fresh 5-yr lows circa 1.46

FXStreet (Mumbai) - GBP/USD recovered partial losses and moved away slightly from fresh five year lows reached in the early European morning, as markets continue to wary ahead of tomorrow’s UK CPI figures amid a dry GBP calendar today.

GBP/USD eyes 1.4550

The GBP/USD pair trades lower near 1.4590, bouncing-off fresh five year lows of 1.4566 levels. The cable extends its downtrend from the last week amid broad US dollar strength with risk from May UK elections still being priced in and weighing on sterling.

The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades higher by 0.10% at 99.73.

Meanwhile, in absence of any economic releases in the day ahead, traders now shift their focus towards UK CPI data due for release tomorrow.

Analysts at TD Securities noted, "Consensus is looking for a flat print, but there is a large negative skew in analysts’ estimates, so an on-consensus flat reading may be taking as a bit hawkish."

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4650 (Today’s High) above which gains could be extended to 1.4700 levels. On the flip side, support is seen at 1.4566 (Today’s Low) below which it could extend losses to 1.4500 (2010 Lows) levels.

EUR/USD steadies around 1.0590-1.06

The sell-off in the EUR/USD appears to have halted around 1.0590-1.06 in the early European session as the US Treasury yields fell moderately.
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