GBP/USD refreshes session tops, near mid-1.2900s post-UK macro data
| • UK monthly GDP growth in July stood at 0.3%, better than 0.2% expected.
• UK goods trade deficit unexpectedly shrinks to £9.97 billion in July.
• Weaker UK manufacturing/industrial production data partly offset positive readings.
The GBP/USD pair built on its intraday climb from sub-1.2900 level and refreshed session tops post-UK macro releases.
According to the latest monthly GDP report, the UK economic growth in July stood at 0.3% m/m as against 0.1% growth recorded in the previous month and better than 0.2% anticipated.
Adding to this, the UK goods trade balance data also bettered expectations and came in to show an unexpected in deficit to £9.97 billion for July, down from £10.68 billion.
The positive readings, to some extent, were negated by weaker UK industrial and manufacturing production data for July and eventually kept a lid on any strong follow-through.
However, Friday's positive Brexit remarks by the EU's chief negotiator Michel Barnier, saying that the EU is open to discussing other backstops regarding the Irish order, continued underpinning the British Pound and remained supportive of a mildly positive tone surrounding the major.
It, however, remains to be seen if the pair is able to build on the momentum or continues with its struggle to make it through 50-day SMA barrier, currently near the key 1.30 psychological mark.
Technical levels to watch
Immediate resistance is pegged near the 1.2980 region, above which the pair is likely to move back above the 1.30 handle and head towards retesting the 1.3025-30 heavy supply zone. On the flip side, sustained weakness below the 1.2900 mark is likely to accelerate the slide towards 1.2850 intermediate support en-route the 1.2800 handle.
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.