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GBP/USD treads water around 1.4940, UK data eyed

FXStreet (Mumbai) - GBP/USD trades dead flat in a slim range in the early European trades, stalling its four consecutive days of gains, as markets now focus on UK jobs and wages data for fresh direction on the major.

GBP/USD capped by 1.4950

The GBP/USD pair trades flat at 1.4936, supported above 1.4920 levels and moving away from fresh one week highs reached at 1.4971 yesterday. The cable trades muted in a flat-lining this morning, consolidating gains from the previous session, as traders now await fresh employment data from the UK for further momentum on the pair.

The major, however, remains supported on a subdued US dollar across the board following recent tepid US macro data. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades lower by -0.09% at 97.80.

Meanwhile, markets remain cautious ahead of UK jobs data which is expected to show jobless rate to have dropped further to 5.6% in the quarter to February, which would be down from 5.7% measured a month before. Jobless claims is expected to have declined by 29,500 in March, bringing the claimant-count rate to 2.3%, down from 2.4% in Jan.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4948 (Today’s High) above which gains could be extended to 1.4971 (April 16 High) levels. On the flip side, support is seen at 1.4900 below which it could extend losses to 1.4867 (April 6 Low) levels.

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