Sterling above $1.55 level, ignores upbeat US data

Pair was trading elevated on Monday despite better-than-expected US durable goods orders for June, ahead of Wednesday's conclusion of the FOMC meeting.

Pair stayed in a moderate rebound in July, increasing from the six-week bottom at $1.5328 seen July 8. However, sterling gave up most of its bullish momentum as the trading activity has been locked in a relatively narrow range for the last two weeks.

As for major economic updates, investors digested upbeat durable goods orders for June, which showed a 3.4% hike. Meanwhile, analysts bet for a slightly weaker 3.0% rise, after a revised -2.1% drop booked previously.

However, the main focus remains on Wednesday's conclusion of the Federal Open Market Committee meeting, which is not expected to bring any changes to monetary policy, but Federal Reserve Chair Yellen might suggest some further hints as to when the main rate will be hiked. The September meeting is still in play. Furthermore, US GDP for the second quarter is due on Thursday and should post growth of 2.5%, returning to strong figures after Q1's dismal -0.2%.

Similarly in the UK, the biggest release of this week will release today in form of the first estimate of GDP in the second quarter. The market survey is set for an acceleration to 0.7% quarter-to-quarter, from the figure of 0.4% seen in the March quarter.