Forex: GBP/USD accelerates its correction lower

FXstreet.com (Barcelona) - After hitting fresh intraday highs in the boundaries of the key resistance at 1.5600 on Wednesday, the sterling commenced a correction lower, partially retracing earlier gains to the proximities of 1.5545/50.

Softer US data from the employment and manufacturing sectors lifted the greenback, adding to the selling pressure as well. Ahead in the day, the FOMC meeting is due next. “We only expect minor alterations but given the current momentum in favour of dollar selling, that might be enough to trigger further falls over the very short-term”, suggested Derek Halpenny, Strategist at BTMU.

GBP/USD is now up 0.12% at 1.5553 with the next resistance at 1.5606 (50% of Jan-mar decline) followed by 1.5690 (high Feb.13) and then 1.5810 (high Feb.11).
On the flip side, a breach of 1.5528 (hourly low May 1) would then target 1.5476 (low Apr.29) and finally 1.5418 (low Apr.26).