GBP/USD: up on dollar's weakness

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3042

The GBP/USD pair recovers from a daily low of 1.2998 and trades near the 1.3050 resistance ahead of the US opening, with the Pound shrugging off a tepid Q2 GDP, as the economy is estimated to have grew 0.3% in the three months to June. The figure matched market's expectations, but it fell short of backing a rate hike in the UK. Yearly basis, growth was of 1.7%, also in line with market's forecast. Technically, the pair continues trading within Fibonacci levels, with buyers defending the downside around 1.3010, the 38.2% retracement of the latest weekly advance, but buying interest diminishing once the pair reaches the current 1.3050 price zone, the 23.6% retracement of the same rally. In the 4 hours chart, the technical stance is neutral-to-bullish as technical indicators remain directionless right above their mid-lines, whilst the price stands a few pips above a marginally bullish 20 SMA. A downward extension below the 1.3000 region should expose 1.2965, the 50% retracement of the mentioned rally, en route to the 1.2920 region, where the pair bottomed last week. A steady advance beyond 1.3050, on the other hand, could see the pair extending its advance up to 1.3125, the yearly high posted earlier this month.

Support levels: 1.300 1.2965 1.2920

Resistance levels: 1.3050 1.3090 1.3125

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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