GBP/USD trims gains near 1.5450, focus shifts to UK CPI

FXStreet (Mumbai) - The bid tone surrounding the GBP/USD pair is seen reducing in the mid-European session, as the US dollar erases most losses against its major peers, with traders now shifting focus towards UK’s CPI due tomorrow in an otherwise quiet session.

GBP/USD drops from 1.5470 region

The GBP/USD pair trades 0.20% higher at 1.5457, retreating from fresh 3-day high posted at 1.5471 in early dealings. The cable keeps its recovery mode intact from 1.5400 levels and trades firmer on expectations of an improved headline UK CPI figure due to be reported on Tuesday.

The UK CPI is expected to have risen 0.2% in August, moving back to positive territory from a 0.2% decline in the previous month.

Moreover, the diminishing bets of Fed rate hike this week and even for this year, keeps the greenback broadly lower, helping the upside in the GBP/USD pair.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5471 (Today’s High) above which gains could be extended to 1.5509 (Aug 27 High) levels. On the flip side, support is seen at 1.5400 below which it could extend losses to 1.5368 (Aug 27 Low) levels.

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