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GBP/USD attempts a bounce to 1.4800

FXStreet (Mumbai) - GBP/USD remained elevated in the European morning, extending its recovery mode after Bank of England (BOE) Governor Mark Carney's comments last week sent sterling to its lowest mark since June 2010.

GBP/USD inching towards fresh highs

The GBP/USD pair trades higher by 0.24% at 1.4782, gradually crawling towards 1.48 mark. The cable extends gains as GBP bulls were successful in breaking above a resistance zone formed around 1.4770 levels, pushing the pair towards session highs at 1.4787 levels.

GBP/USD defends gains largely on the back of a subdued US dollar against its major counterpart. The upcoming FOMC statement on Wednesday is likely to be the main driver for GBP/USD in the week ahead, where the "patience" stance is expected to be dropped from its monetary policy statement while a June rate hike hint might be forthcoming.

GBP/USD tumbled to fresh 4-1/2 year lows at 1.4697 levels on Friday, dragged by rather dovish comments from Mark Carney and disappointing economic data from the UK construction sector.

Meanwhile, traders now await US economic releases for fresh cues on the pair, in absence of any GBP data for rest of the session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4800 above which gains could be extended to 1.4850 levels. On the flip side, support is seen at 1.4735 (Today’s Low) levels below which it could extend losses to 1.4697 (March 13 Low) levels.

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