GBP/USD challenges 1.3000 post-UK data

Cable stays weak near 1.30 post-UK data on Friday.
UK’s advanced Q3 GDP matched previous estimates at 0.6% QoQ.
Brexit negotiation remains the key driver for Sterling.

Pablo Piovano FXStreet

The selling bias around the British Pound remains well and sound during the second half of the week, although some decent contention turned up in the sub-1.30 area for GBP/USD, session lows.

GBP/USD looks to Brexit headlines for direction

Cable is down for the second consecutive session so far at the end of the week, coming under further downside pressure mainly in response to the lack of progress in the UK-EU Brexit negotiations.

Today’s UK data have lent some support to the Sterling after preliminary Q3 GDP figures now see the economy expanding 0.6% QoQ and 1.5% on a yearly basis, matching forecasts.

Further UK data saw Industrial Production coming in flat inter-month in September and Manufacturing Production expanding 0.2%. In addition, the trade deficit shrunk to 9.73 billion in September, bettering estimates.

GBP/USD levels to consider

As of writing, the pair is losing 0.44% at 1.3005 and a breakdown of 1.2989 (21-day SMA) would open the door to 1.2959 (10-day SMA) and finally 1.2921 (low Oct.4). On the upside, the next hurdle is located at 1.3176 (high Nov.7) seconded by 1.3259 (high Oct.12) and then 1.3299 (high Sep.20).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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