GBP/USD drops rapidly towards 100-DMA on mixed UK data
|The GBP/USD pair popped higher in a knee-jerk reaction to upbeat UK Q4 GDP first revision, but reversed rapidly and slumped to fresh lows sub-1.2450, as markets digested poor business investment figures.
The second reading of the UK Q4 GDP data came in at 0.7% versus 0.6% expectations, while prelim business investment data disappointed markets, arriving at -1.0% in the reported month versus 0.4% previous and 0.0% expectations.
Markets now eagerly await the speeches from BOE MPC members Cunliffe and Shafik for fresh impetus on the GBP. While the existing home sales data from the US docket, Fedspeak and FOMC minutes will also remain in the limelight later today.
GBP/USD Levels to consider
At 1.2442, the supports are aligned at 1.2432 (100-DMA) and 1.2400 (zero figure) and below that at 1.2379 (Feb 15 low). On the flip side, the upside barriers are lined up at 1.2508 (Daily high), 1.2527 (Feb 16 high) and 1.2550 (Feb 14 high).
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