The GBP/USD pair fell down to 1.5307 following the release of the UK preliminary Q3 GDP below expected. According to official data, the economy grew by 0.5%, below the median estimate of 0.6%. Yearly basis, the economy also expanded less than expected, up by 2.3% against the 2.4% forecast, given a strong fall in the UK construction sector.
The pair managed to bounce quickly from the low, but the recovery was quite shallow and the bearish pressure keeps mounting ahead of the release of several US critical figures that include Durable Goods Orders and Consumer Confidence.
Technically, the 4 hours chart is in line with further declines, as the price remains capped by a bearish 20 SMA now around 1.5360, whilst the technical indicators present bearish slopes in negative territory. The price however, remained so far above Friday's low of 1.5303, and it will take a downward acceleration through the 1.5300 level to confirm a continued decline, eyeing then a test of the 1.5250/60 price zone. Additional falls below this last, can see the pair extending down to 1.5220 by the end of the day.
The mentioned 20 SMA is now the main resistance, with only a steady recovery above 1.5360 supporting a continued advance up to the 1.5410 region, a former strong support.
View the live chart of the GBP/USD
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