GBP/USD analysis: pressuring the base of the weekly range

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2948

The GBP/USD pair gave back the little ground recovered after FOMC Minutes, settling lower on Thursday and not far from its weekly low of 1.2926. The pair topped at 1.3014 early London, but eased after the release of soft UK data, as the second revision of UK Q1 GDP came as initially estimated at 0.3%, but the YoY reading came in at 2.0% missing previous and expectations of 2.1%. Total business investment for the same period was revised higher, up to 0.6% from previous -0.9%, while mortgage approvals, according to the BBA were less than expected in April but within average, 40.75K against 40.80K expected. The pair continues to lack clear directional strength, neutral daily basis, but with an increasing downward potential ahead of UK election. From a technical point of view, the 4 hours chart shows that the price was unable to recover above a bearish 20 SMA, now offering an intraday resistance at 1.2970, while technical indicators stand path within neutral territory. Below 1.2920, the pair has scope to extend its slide down to 1.2830 a strong static support that should attract some buying interest.

Support levels: 1.2920 1.2880 1.2830

Resistance levels: 1.2970 1.3010 1.3050

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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