GBP/USD Forecast: waiting for US GDP to rally further
|The GBP/USD pair trades as fresh 2017 highs, having so far reached 1.2956 and holding nearby, despite a disappointing Q1 preliminary GDP. According to preliminary estimates, the UK economy grew by 0.3% in the first quarter of the year, the slowest rate of growth since Q1 2016. The year-on-year growth came in at 2.1%, above previous 1.9% but below market's expectations of 2.2. UK Mortgage approvals reached £41,061K, 2.8% lower than in February 2017 but in line with the monthly average of 41,600K over the previous six months.
The pair suffered a minor setback with the release that was quickly reverted, as market's expectations point for a weak GDP reading in the US for the same period, to be released later today.
From a technical point of view, the pair retains its bullish stance, given that in the 4 hours chart, the price keeps accelerating above a bullish 20 SMA, whilst technical indicators turned north within positive territory. Another leg higher beyond the mentioned daily high should lead to a test of 1.3000/10. The immediate support comes at 1.2870, followed by the 1.2820/30 price zone, where buying interest will likely resurged.
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