The GBP/USD pair on Wednesday surged through the 1.3100 handle following the FOMC rate decision. The pair initially eased to the 1.30 neighborhood after the preliminary UK GDP figures showed that Britain’s economy grew by only 0.3% during the second quarter of 2017. This followed a sluggish 0.2% growth in the previous quarter and reaffirmed prospects of status-quo BOE. The pair, however, reversed early dip and continued gaining traction through NY trading session post the FOMC rate decision. The move was seen in reaction to the less hawkish FOMC outcome, which triggered a fresh leg of US Dollar sell-off.
The up-move extended through Asian session on Thursday, with the pair touching a fresh 10-month high and now entering a bullish consolidation phase just below mid-1.3100s. With the key Fed decision out of the way, investors now look forward to the critical release of US durable goods orders, goods trade balance and weekly jobless claims data, due for release later during the NA session. From the UK, the release of CBI realized sales data would be the highlight of an otherwise empty economic docket.
From a technical perspective, the remains poised to extend the bullish trajectory but is likely to confront some fresh supply near a short-term ascending trend-line, around 1.3175-80 region. A clear break through the mentioned hurdle would pave way for continuation of the up-move even beyond the 1.3200 handle towards 1.3225-35 horizontal resistance.
On the flip side, any profit taking slide now seems to find immediate support near 1.3125-20 region, which is closely followed by support at the 1.3100 handle. A convincing break through the said support levels, leading to a subsequent weakness below 1.3080-75 region, would turn the pair vulnerable to head back towards retesting the key 1.30 psychological mark, also coinciding with a short-term ascending trend-line support on 4-hourly chart.
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