GBP/USD supported at 1.3015, eyes on UK Q2 GDP for fresh direction
|Fresh bids emerged once again near 1.3015 region in the Asian trades, allowing a tepid-bounce in GBP/USD back towards 1.3050 levels.
However, further upside appears to lack follow-through, as the bulls turn in a wait-and-see mode ahead of the UK Q2 prelim GDP release due out on Wednesday.
Attention turns to UK GDP report
The preliminary figures for the second quarter UK GDP are expected to have accelerated to 0.3% q/q versus 0.2% seen last, while on annualized basis, the pace of expansion seems to have eased to 1.7% versus 2.0%.
The mixed GDP numbers could keep the pullback restricted from 1.2930 levels, while the greenback finds fresh signs of life from strong US manufacturing PMIs. However, the main risk event for the major this week will remain the FOMC policy decision, with markets widely expecting the Fed to announce the start of the balance sheet normalization process from September.
In the meantime, Cable will take cues from the UK’s CBI industrial orders data and US consumer confidence gauge for some trading impetus. Also, of note will be BOE MPC member Haldane’s speech due later in the NA session.
GBP/USD levels to consider
To the upside, resistances are aligned at 1.3053/57 (Jul 19 & 24 high), 1.3100 (round figure) and 1.3150 (psychological levels). On the flipside, 1.2972 (20-DMA) guards the next support of 1.2881 (50-DMA), below which 100-DMA support at 1.2830 lie.
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.