GBP/USD drops below 1.3000 post-UK GDP

Pablo Piovano FXStreet

The Sterling is losing the grip at the end of the week, with GBP/USD now breaking below the key 1.3000 handle following UK data.

GBP/USD muted on data

GBP is now offered after UK’s GDP figures showed the economy has expanded in line with forecasts during the January-March period, 0.2% inter-quarter and 2% on a annualized basis.

Further UK data saw total business investment expanding 0.6% QoQ and 0.1% over the last twelve months in Q1. In addition, the index of services rose 0.2% on the three months ended in April while the current account came in at £16.89 billion in the first quarter, bettering expectations albeit up from the previous reading.

In the meantime, spot keeps navigating in the upper end of the recent range, managing to retake the psychological 1.3000 handle although gains further north faced strong resistance at 1.3030 for the time being.

GBP/USD levels to consider

As of writing the pair is losing 0.15% at 1.2988 facing the next support at 1.2858 (55-day sma) followed by 1.2807 (21-day sma) and finally 1.2790 (10-day sma). On the other hand, a breakout of 1.3030 (high Jun.30) would open the door to 1.3051 (2017 high May 18) and then 1.3125 (high Sep.22 2016).

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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