The GBP/USD surges early Europe, supported by good news in the UK regarding GDP data: both quarterly and yearly readings came in line with expected, but the previous of the first was revised up to 0.9%. Details show that output was pretty balanced, as services grew 0.7%, industrial sector 0.5% and construction 0.8%, meaning the growth in economy and the positive GDP reading was even, and not the result of a surprise in a particular sector.
Technically, the 4 hours chart shows price reached 1.6071, 38.2% retracement of the pair’s latest bullish run, where the chart also shows a bearish 20 SMA reinforcing the resistance level. Indicators in the same time frame head higher below their midlines, not providing enough upward momentum to confirm a run higher: price needs to extend above mentioned resistance to be able to gain further, pointing to 1.6125, strong static resistance level. Below 1.6030, 50% retracement of the same rally on the other hand, should see price again falling, with 1.5995 as next probable bearish target in the short term.
View Live Chart for GBP/USD
Technically, the 4 hours chart shows price reached 1.6071, 38.2% retracement of the pair’s latest bullish run, where the chart also shows a bearish 20 SMA reinforcing the resistance level. Indicators in the same time frame head higher below their midlines, not providing enough upward momentum to confirm a run higher: price needs to extend above mentioned resistance to be able to gain further, pointing to 1.6125, strong static resistance level. Below 1.6030, 50% retracement of the same rally on the other hand, should see price again falling, with 1.5995 as next probable bearish target in the short term.
View Live Chart for GBP/USD
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