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GBP/USD catches fresh bid wave, hits session highs

FXStreet (Mumbai) - The bid tone around GBP/USD gathered pace after it took out the critical resistance zone of 1.4515-1.4519 and hit a fresh session high of 1.4547 levels.

Hovers around 23.6% fibo level

The spot now trades around 1.4530 (23.6% of 1.4079-1.4668). The recovery from Friday’s drop continued in early Europe as the Fed is still not seen raising rates this year despite a drop in the unemployment rate and uptick in wages in January.

The data calendar is thin; hence, the pair is at the mercy of the overall market sentiment. The market is looking forward to Yellen's testimony on Wednesday.

GBP/USD Technical Levels

The immediate resistance is seen located at 1.4547 (daily high), above which the pair could rise to 1.4590 (Friday’s high). On the other hand, a break below 1.4516-1.4519 (23.6% of 1.5930-1.4079 + 38.2% of 1.5230-1.4079) could shift risk in favor of a drop to 1.4502 (5-DMA).

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