GBP/USD hits fresh multi-month tops near mid-1.2900s, US GDP next
|The GBP/USD pair built on to its break-out momentum and moved higher for the fourth consecutive day, rising to the highest level since late-Sept. near mid-1.2900s.
After initially wobbling around the 1.2900 handle, a fresh wave of US Dollar selling interest helped the pair to shrug-off dismal UK GDP figures and has been sole driver of the pair's up-move in the past hour of so. In fact, the key US Dollar Index has now dropped back closer to 5-month lows touched earlier this week, despite of a mild up-tick in the US treasury bond yields.
Earlier today, data released from the UK showed the economy is expected to register a quarterly growth of 0.3% during the first quarter of 2017, down from 0.7% reported in the previous quarter. Meanwhile, the yearly growth rate is expected to tick higher to 2.1% from previous 1.9%.
• UK household squeeze hits 1Q growth as GDP grows just 0.3% - ING
Investors now look forward to the advance release of US GDP number for some immediate respite for the US Dollar bulls. Against the backdrop of recent disappointment from the US macro data, disappointing growth numbers should continue to weigh on the greenback and assist the pair to extend its near-term upward trajectory. Apart from the quarterly GDP print, the US economic docket also features the release of Chicago PMI and Revised UoM Consumer Sentiment.
• US: Focus on Q1 GDP, consumer confidence and Chicago PMI data - BBH
Technical levels to watch
From current levels, immediate resistance is pegged near 1.2960-70 zone, above which a fresh leg of up-move has the potential to lift the pair beyond the key 1.30 psychological mark towards testing its next major hurdle near 1.3070-80 area in the near-term.
On the flip side, retracement below the 1.2900 handle, leading to a subsequent drop below 1.2885 level, might continued to find some fresh buying interest at a previous resistance, now turned support, near 1.2860-50 zone. Only a decisive break below mid-1.2800s might prompt additional profit taking and negate further bullish bias.
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.