GBP/USD Forecast: Bears await a convincing break through 1.3055 support, UK macro data eyed
|Having failed to sustain above the 1.3200 handle in the previous session, the GBP/USD pair came under some intense selling pressure on Thursday and dropped closer to weekly lows. The post-FOMC broad-based US Dollar rally was seen as one of the key factors behind the pair's steep decline back below the 1.3100 round figure mark. The USD positive momentum got an additional boost from the mostly in-line US final Q2 GDP growth figures and stronger than expected durable goods orders.
The pair regained some positive traction during the Asian session on Friday and recovered a part of the previous session's slump as market participants now look forward to the UK macroeconomic data for fresh impetus. Today's UK economic docket highlights the release of final UK Q2 GDP print, which coupled with the current account deficit figures for the second quarter of 2018 might infuse some volatility around the GBP crosses.
Later during the early North-American session, a slew of second-tier US economic data will also be looked upon for some short-term momentum play on the last day of the week. Apart from this, any fresh Brexit-related news/developments might continue to influence the British Pound and produce some meaningful trading opportunities.
From a technical perspective, the pair has managed to hold its neck above the 1.3055-50 support area, representing 38.2% Fibonacci retracement level of the 1.2662-1.3298 recent upsurge. A convincing break below the mentioned support will mark the end of recent corrective bounce and turn the pair vulnerable to head towards testing sub-1.3000 level, a support coinciding with 50% Fibonacci retracement level.
On the flip side, momentum back above the 1.3100 handle now seems to confront stiff resistance near the 1.3140-50 confluence region, comprising of 100-day SMA and 23.6% Fibonacci retracement level, above which the pair is likely to make a fresh attempt towards reclaiming the 1.3200 handle.
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