GBP/USD analysis: Pound saved by absence of dollar's demand

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3303

US sales picked up in October, but more layoffs were registered.
UK Q3 GDP unchanged, but business investment slowed.

The Sterling Pound was the worst performer against the greenback this Thursday, ending the day in the red around the 1.3300 level, after hitting 1.3336 during the previous Asian session. The rally was backed by persistent dollar's weakness, while GBP's decline was once again due to deceiving UK data, as positive headlines hide disappointing numbers. According to official figures, the second estimate of the UK Q3 GDP remained unchanged at 0.4% for the quarter and at 1.5% yearly basis, although business investment in the same period slowed, up just by 0.2% against the previous 0.5% or the expected 0.4%. Realized sales, according to CBI reverted in October the awful September´s -36%, and resulted at +26%, yet the report also indicated that retailers are laying off staff. The pair continued trading with a positive intraday bias, given that in the 4 hours chart, it holds above a bullish 20 SMA, while technical indicators are posting modest recoveries within bullish territory, but holding below their previous highs. Pretty much, the chart is saying that the Pound is weakening, but the absence of dollar's demand is keeping the downside limited.

Support levels: 1.3260 1.3220 1.3175

Resistance levels: 1.3335 1.3370 13410

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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