GBP/USD Forecast: Disappointing UK GDP weighed on the pound
GBP/USD Current price: 1.3748
- UK Gross Domestic Product was up a modest 0.4% MoM in February.
- BOE’s Haldane announced he would quit his position after June’s meeting.
- GBP/USD has limited bullish potential as long as it holds below 1.3815.
The GBP/USD pair seesawed between gains and losses to end Tuesday unchanged around the 1.3740 level. The pair topped 1.3768, later falling on the back of mixed UK data. The February Goods Trade Balance posted a deficit of £-16.442 billion, worse than anticipated, while the monthly Gross Domestic Product printed at 0.4% for February, better than the previous -2.2% but worse than the 0.6% expected. Industrial Production in the country fell by 3.5% YoY, better than the -4.4% expected, while Manufacturing Production decreased by 4.2% YoY vs the -5.1% anticipated.
Also, the Bank of England Chief Economist Andy Haldane announced he would quit his position and step down from the Monetary Policy Committee after June's meeting to become the Chief Executive of the Royal Society for Arts, Manufactures and Commerce. The UK won’t publish relevant macroeconomic data this Wednesday.
GBP/USD short-term technical outlook
The GBP/USD pair maintains a neutral-to-bearish stance in the near-term. The 4-hour chart shows that the pair is currently above a flat 20 SMA, after briefly piercing it, but also that it remains below bearish 100 and 200 SMAs. Technical indicators hover around their midlines, lacking clear directional strength. As long as the pair remains below 1.3815, chances of a firmer recovery will remain limited.
Support levels: 1.3700 1.3665 1.3620
Resistance levels: 1.3790 1.3815 1.3860
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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.
