GBP/USD Forecast: consolidating around 1.2200
|The GBP/USD pair jumped up to 1.2271 after the release of the UK preliminary Q3 GDP that came in higher than consensus expectations, although the pair quickly eased back towards its pre-release levels. The economy grew by 0.5% during the three months to September, against a forecast of 0.3%. When compared on a year-on-year basis, GDP was of 2.3% against an expected 2.1%. Investors will now wait for the release of US Durable Goods Orders and employment and housing data.
From a technical point of view, the pair maintains the neutral stance seen on previous updates, as in the 4 hours chart, the price remains stuck to a horizontal 20 SMA, whilst technical indicators head nowhere around their mid-lines. An immediate short term support comes at 1.2190, with a break below it most likely leading to a downward move towards the 1.2140 region, en route to 1.2080, this week low.
Upward moves beyond the mentioned daily high can extend up to 1.2335, the 23.6% retracement of the latest daily slide, and where selling interest is expected to resume.
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