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GBP/USD retakes 1.5500, oil rebound underpins

FXStreet (Mumbai) - GBP/USD continues its consolidative mode to the upside in the European morning, despite the upbeat tone experienced in the US dollar, as the pound remains boosted on rallying oil prices which offers some support to the UK’s mining and energy sector.

GBP/USD bounces-off 1.5475

The GBP/USD pair trades 0.23% higher at 1.5494, retreating from 1.5474 session lows. The cable recovered from lows and heads higher in a bid to reclaim 1.55 handle as the rebounding oil prices after the previous drop continues to support the GBP.

Moreover, Chinese markets bouncing today also bolstered the prevailing risk-sentiment across the board, further increasing the demand for risk currencies such as sterling. While, the British currency also remains sensitive to the Chinese stock performance as it influences commodity prices, which affects the UK's mining and energy sector in a big way.

Markets now shift focus towards the US data due later today which may have major influence on the cable. US Q2 GDP report will be reported along with weekly jobless claims and pending home sales data.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5509 (Today’s High) above which gains could be extended to 1.5600 levels. On the flip side, support is seen at 1.5474 (Today’s Low) below which it could extend losses to 1.5449 (Aug 26 Low) levels.

Weaker Euro drags EUR/GBP in the red near 0.7300

The shared currency lost its early strength and turned into the red zone versus the British pound in the European morning, pushing EUR/GBP to fresh session lows below 0.73 handle.
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