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GBP/USD stabilises around 1.5550

FXstreet.com (Barcelona) - The GBP/USD is extending its intraday decline on Tuesday, and it seems to have found a new comfort zone between 1.5540 and 1.5560.

Risk-off trade caps GBP/USD

The increasing risk aversion is now capping upside attempts, keeping the demand for GBP subdued despite the pretty decent data from the industrial and manufacturing sectors earlier. “The surveys may be exaggerating the pick-up in GDP and the UK will not be able to buck any deteriorating global trend. But, in the near-term, the UK GDP data are likely to show a clear improvement – probably an acceleration in Q2”, signalled Ross Walter, Analyst at RBS.

Support and resistance levels

At the moment the pair is down 0.19% at 1.5541 with the next support at 1.5488 (low Jun.7) ahead of 1.5426 (61.8% of 1.5008-1.4685) and then 1.5390 (MA10d). On the flip side, a breakout of 1.5618 (high Jun.7) would expose 1.5685 (high Jun.60 and finally 1.5690 (high Feb.13).

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