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.

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).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.