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GBP/USD extends the UK GDP-rally towards 1.5200

FXStreet (Mumbai) - The bid tone around the GBP/USD pair remains intact in the mid-European trades, as the cable continues to benefit from the improving risk-on moods and also from solid economic growth confirmed in the UK.

Holds above hourly 50-MA

The GBP/USD pair trades 0.24% higher at fresh session highs of 1.5188, finding good support at hourly 50-MA. The cable bounced-off from close to multi-month lows and rallied more than 50 pips after the markets cheered the latest UK Q2 GDP report (confirmed at 0.7%).

Moreover, the favourable risk conditions amid rallying European stocks, boosts the appetite for riskier currencies such as the GBP. The pan-European benchmark, the Euro Stoxx 50 jumps nearly 2.50% while the UK’s FTSE is up 2%.

Meanwhile, the upcoming US datasets including the US ADP employment report and the Chicago PMI will influence GBP/USD. While the Fed Chair Yellen’s speech will be also closely eyed.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5208 (Sept 29 High) above which gains could be extended to 1.5243 (Sept 28 High) levels. On the flip side, support is seen at 1.5126 (Sept 29 Low) below which it could extend losses to 1.5100 levels.

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