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GBP/USD trades around 23.6% of last week’s rally

FXStreet (Mumbai) - The GBP/USD pair is trading moderately higher around the 23.6% of the last week’s 300-pip rally located at 1.5436 levels.

Will USD demand return?

The US dollar was in demand on Friday after the 10-year treasury yield in the US recovered to trade above 2%. The yield remained above 2% in Asia and ticked moderately higher after the Chinese GDP dropped slower than expected. However, the USD has not been able to gain much ground despite the resilience in the yield.

The Euroland and the US economic calendar is empty. Thus, demand for the USD depends on whether the treasury yields continue to advance or turn lower.

GBP/USD Technical Levels

At 1.5440, the immediate resistance is located at 1.5457 (hourly 50-MA), above which the pair could target 1.5568 (38.2% of Jul14-Apr15 plunge). A break above the same could see the pair test 1.56. On the other side, support is seen at 1.5400 (50-DMA) and 1.5387 (Oct 13 high). A break below the same would expose 1.5354 (50% of last week’s 300-pip rally).

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