Sterling falls further after downbeat UK GDP data
|UK GDP fell below expectations in Q1, as markets feared such outcome on bad weather that hit Britain in early 2018, but this is just a part negative factors that impacted UK economy.
Data released today showed that UK economy grew at its weakest pace since late 2012, as results undershot forecasts (Q1 GDP q/q 0.1% vs 0.3% f/c / y/y 1.2% vs 1.4% f/c/prev).
Cable spiraled through initial 100SMA support and hit session low at 1.3800 (the lowest since 09 Mar), signaling further weakness, as downbeat data further affected firm bearish sentiment, weakened by another hit on May rate hike expectations.
Minor support at 1.3780 (08 Mar trough) lies en-route to key support at 1.3711, which came in near-term focus.
Oversold conditions have so far been ignored, however, some corrective action could be anticipated.
Broken 100SMA (1.3868) now reverted to initial resistance, guarding daily cloud base at 1.3901.
Focus now turns towards US Q1 GDP data and speech of BoE’s Governor Carney, which are due later today. US GDP is forecasted at 2.0% in Q1 vs 2.9% previous, which could provide a breather to pound’s bears on weak release, while daily cloud twist, due next Tuesday, could attract stronger recovery,.
Res: 1.3868; 1.3901; 1.3965; 1.4005
Sup: 1.3800; 1.3780; 1.3711; 1.3655
Interested in GBPUSD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.