GBP/USD analysis: holding in nowhere land

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2459

The GBP/USD pair continued struggling for direction this Wednesday, surging up to 1.2507 at the beginning of the day amid EUR/GBP falling to fresh yearly lows, and later falling to 1.2422, in spite of an upward revision to UK quarterly growth. The second estimate of Q4 GDP, was revised slightly higher to 0.7% from 0.6%, although the annualized figure came in at 2.0%, below the first estimate of 2.2%. Business investment fell by 1.0% in the same quarter, when compared to the previous one. The dollar gained some strength ahead of the release of the FOMC Minutes, backed by FED's Powell comments, who said that the risk facing the US economy and more in balance, allowing the Central Bank to raise rates. The Minutes failed to boost the greenback, helping the GBP/USD to bounce back to mid-range. Technically, the pair has made no progress, still neutral as in the 4 hours chart, the price continues moving back and forth around a horizontal 20 SMA, whilst technical indicators are back around their mid-lines, with no clear directional strength.

Support levels: 1.2430 1.2380 1.2345

Resistance levels: 1.2480 1.2530 1.2565

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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