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GBP/USD poised to test 1.57

FXStreet (Mumbai) - GBP/USD accelerated losses below a break of crucial 1.5750 – psychological levels in the European session, with the pound printing fresh session lows versus the US dollar, largely as the US dollar extends its broad recovery from fresh three month lows while markets now eagerly await US data flow further incentives.

GBP/USD drops from 1.5751

The GBP/USD pair trades -0.29% at fresh session lows at 1.5729, with eyes set on 1.57 handle. The cable fell further into losses as the US dollar regained lost ground and jumped to session highs versus its major competitors amid a data-empty European session.

The dollar index, which measures the currency's strength against its major peers, jumped beyond 93.50 and now trades at fresh session highs of 93.87, recording a 50% gain on the day.

Meanwhile, US data remains in focus later today, with figures released for industrial production in April and the manufacturing activity index for New York in May, with respective consensus of 0.0% over the months and a reading of 5.0. The risks would look to the downside given the lagged impact of the strong USD on exports and the downturn in the shale industry.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5800 above which gains could be extended to 1.5828 (Nov 17 High) levels. On the flip side, support is seen at 1.5700 below which it could extend losses to 1.5684 (Dec 19 High) levels.

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NZD/USD off lows near 0.7450

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