GBP/USD Forecast: sentiment pushing the pair towards 1.5300


The year seems to have started in slow motion across the world, as UK GDP readings have just missed big: the economy grew 0.3% in the Q1 of 2015, below expectations of a 0.5% growth and previous 0.6%, being the worst reading since Q4 2012. The year-over-year reading ended up at 2.4%, well below previous 3.0%. The GBP/USD tumbled with the release to a daily low of 1.5174, but buyers immediately bought the dip, sending the pair back towards its daily high in the 1.5260 region.

Sentiment is leading the way rather than technical readings, as market expects now some progress in Greek negotiations with its creditors. Technically, the pair remains near its daily high, with a strongly bullish 20 SMA well below the current price, and the RSI indicator maintaining its bullish slope, despite being in overbought territory. The Momentum indicator lacks directional strength at the time being, but remains in positive territory, all of which suggest the pair may reach the 1.5300/10 region, should the price break above the daily high. The immediate support stands at 1.5220, followed by the mentioned daily low in the 1.5170 price zone, where buying interest is expected to resume. 


View live chart of the GBP/USD

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