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GBP/USD flattish above 1.55

FXStreet (Mumbai) - The British pound erased gains and trades flat against the American dollar in the mid-European session, with GBP/USD holding above 1.55 barrier, as traders continue to digest BPE minutes while preferring to remain on the side-lines ahead FOMC minutes due to be published later in the US session.

GBP/USD deflates from 1.5536 session highs

The GBP/USD pair trades almost unchanged at 1.5524, supported above 1.55 handle. The cable pared BOE minutes inspired gains and trades muted as traders refrain from creating fresh positions before FOMC minutes as the minutes is likely to spur some volatility and have major impact on the US dollar.

Also, the markets continue to absorb BOE MPC minutes which showed that that all nine MPC members voted unanimously in both cases. The minutes said that inflation will be picking up towards the end of the year. The BOE made no changes to monetary policy at its meeting on May 11, as expected, maintaining its lending rate at a record low of 0.5%.

Later in the day, the markets will focus on the FOMC minutes that could shed more light on the timing of an interest hike in the US.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5536 (Today’s High) above which gains could be extended to 1.5600 levels. On the flip side, support is seen at 1.5473 (Today’s Low) below which it could extend losses to 1.5445 (May 19 Low) levels.

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