News

GBP/USD tumbles to lows near 1.3280 post-UK GDP

  • UK GDP expected to expand 0.4% QoQ in Q3.
  • Earlier up move stalled near 1.3340.
  • Positive sentiment around Brexit talks supports GBP.

The Sterling has give away initial gains vs. the greenback on Thursday, forcing GBP/USD to recede towards session lows in the 1.3280 area.

GBP/USD offered on GDP figures

Cable met a bout of selling pressure after preliminary figures of UK GDP showed the UK economy is expected to expand at an annualized 1.5% during the July-September period and 0.4% inter-quarter, both prints coming in in line with prior surveys.

Further UK data saw advanced business investment rising 1.3% on a yearly basis in Q3 and 0.2% QoQ, and index of services rising 0.4%. Later in the session, CBI’s distributive trades survey is due.

In the meantime, Cable is now reverting a 5-session positive streak following UK data and after being rejected from the critical 1.3340 area earlier in the session. However, further gains in GBP appears likely in the near term following the activity in GBP futures markets and some fresh optimism stemming from the Brexit negotiation.

GBP/USD levels to consider

As of writing the pair is losing 0.11% at 1.3306 and a breach of 1.3285 (low Nov.23) would target 1.3254 (55-day sma) en route to 1.3186 (21-day sma). On the other hand, the next hurdle is located at 1.3337 (high Nov.23) seconded by 1.3343 (50% Fibo of 1.3658-1.3017) and finally 1.3447 (high Sep.6 2016).

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.