GBP/USD drops below 1.33 as USD extends gains on strong data


  • US GDP growth in Q4 beats expectations.
  • Chicago PMI rises to its best level in more than a year. 
  • US Dollar Index turns positive on the day above 96.

The GBP/USD pair failed to hold above the 1.33 mark on Thursday after today macroeconomic data releases from the United States helped the greenback start retracing this week's losses. As of writing, the pair was trading at 1.3285, losing 0.18% on a daily basis.

The U.S. Bureau of Economic Analysis today reported that according to its initial estimate, the real GDP is seen expanding by 2.6% on a yearly basis in the fourth quarter compared to the market expectation of 2.3%. The US Dollar Index, which recovered above 96 on the GDP data, extended its rebound after the Chicago PMI improved to 64.7 in February from 56.7 in January. At the moment, the DXY is up 0.15% 96.25.

Earlier in the day, British Brexit Secretary Barclay said that there was no consensus in Parliament about a second referendum. On other Brexit-related headlines, the European Union's Chief Brexit Negotiator Barnier argued that an extension to the negotiation period was possible but questioned what purpose it would serve. "An extension must be not to delay the problem but solve the problem in the House of Commons," Barnier explained.

Technical levels to consider

GBP/USD

Trends:
    Daily SMA20: 1.3005
    Daily SMA50: 1.2903
    Daily SMA100: 1.2881
    Daily SMA200: 1.2992
Levels:
    Previous Daily High: 1.3351
    Previous Daily Low: 1.3233
    Previous Weekly High: 1.3109
    Previous Weekly Low: 1.2891
    Previous Monthly High: 1.3214
    Previous Monthly Low: 1.2438
    Daily Fibonacci 38.2%: 1.3306
    Daily Fibonacci 61.8%: 1.3278
    Daily Pivot Point S1: 1.3243
    Daily Pivot Point S2: 1.3179
    Daily Pivot Point S3: 1.3125
    Daily Pivot Point R1: 1.3361
    Daily Pivot Point R2: 1.3415
    Daily Pivot Point R3: 1.3479

 

 

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