GBP/USD erases post-UK data gains, drops to 1.5504

FXStreet (Mumbai) - The GBP/USD pair hit a fresh session low of 1.5504 as the sudden fall in the EUR/USD pair dragged the cable lower from the post UK industrial production data high of 1.5540.

USD rises across the board

The USD dollar has found love across the board after the EUR/USD pair broke below the psychological 1.10 handle. The losses in the common currency also weighed over the British Pound. Meanwhile, the turmoil in the Chinese markets also pushed commodity currencies – AUD, NZD, CAD lower across the board.

Moreover, the strong bid tone on the USD has also weighed over the safe haven currencies like the CHF. The GBP/USD pair ran into offers after being rejected at the 1.5606 (23.6% Fib R of Apr-June rally). Fresh offers came-in below 1.5570 (50-DMA) and 1.5540.

GBP/USD Technical Levels

The pair is trading around 1.5510. A break below the psychological support of 1.55 could push the pair down to 1.5461 (61.8% Fib R of June rally). On the flip side, a rise above 1.5540 could see the pair re-test the 50-DMA at 1.5570.

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