GBP/USD testing monthly highs near 1.5720

FXStreet (Mumbai) - GBP/USD bounced-off 1.5700 levels and heads towards fresh monthly highs, as the pound pick-up strength as the greenback remains weaker on diminishing Sept rate hike bets following Wednesday’s dovish FOMC minutes.

GBP/USD firmer above 1.5700

The GBP/USD pair trades 0.16% higher at 1.5716, having posted a high at 1.5723 and a low at 1.5681. The cable manages to hold gains amid risk-off sentiments fuelled by China worries as the country’s stock markets plummeted nearly 11% this week.

The pound also enjoyed gains as the US dollar continues underperform largely on reducing Sept rate hike chances after the FOMC minutes lacked a clear Sept bias.

Looking ahead, the UK is to report its public sector net borrowing figure later today, but much more attention will go to the US manufacturing PMI due later in the New York session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5778 (June 30 High) above which gains could be extended to 1.5800 levels. On the flip side, support is seen at 1.5681 (Today’s Low) below which it could extend losses to 1.5666 (June 24 Low) levels.