GBP/USD analysis: UK GBP could be a double whammy for Pound
|GBP/USD Current price: 1.3038
The GBP/USD pair surged to 1.3083, but closed the day pretty much unchanged in the 1.3030 region. There were no relevant macroeconomic releases in the UK, but the CBI Industrial trends survey showed that Britain’s manufacturers increased production last month at the fastest rate since the mid-1990s, although new orders fell to 10 from previous 16. Attention shifts now to UK Q2 preliminary GDP to be released early Wednesday, with the economy expected to have grown by 0.3% in the three months to June, up from previous 0.2%. A disappointing reading will be a double whammy for the Pound, as not only will indicate slower growth, but also helped the BOE in the case of keeping rates low. From a technical point of view, the pair maintains a neutral-to-bullish stance, as in the 4 hours chart, the price holds above its 20 SMA and the 38.2% retracement of its latest bullish run, both around 1.3010, now the immediate support, although technical indicators remain directionless within positive territory. To the upside 1.3050, the 23.6% retracement of the same rally is the immediate resistance, ahead of this month high of 1.3125.
Support levels: 1.310 1.2965 1.2920
Resistance levels: 1.3050 1.3090 1.3125
View Live Chart for the GBP/USD
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