GBP/USD drops rapidly towards 100-DMA on mixed UK data

Dhwani Mehta FXStreet

The GBP/USD pair popped higher in a knee-jerk reaction to upbeat UK Q4 GDP first revision, but reversed rapidly and slumped to fresh lows sub-1.2450, as markets digested poor business investment figures.

The second reading of the UK Q4 GDP data came in at 0.7% versus 0.6% expectations, while prelim business investment data disappointed markets, arriving at -1.0% in the reported month versus 0.4% previous and 0.0% expectations.

Markets now eagerly await the speeches from BOE MPC members Cunliffe and Shafik for fresh impetus on the GBP. While the existing home sales data from the US docket, Fedspeak and FOMC minutes will also remain in the limelight later today.

GBP/USD Levels to consider

At 1.2442, the supports are aligned at 1.2432 (100-DMA) and 1.2400 (zero figure) and below that at 1.2379 (Feb 15 low). On the flip side, the upside barriers are lined up at 1.2508 (Daily high), 1.2527 (Feb 16 high) and 1.2550 (Feb 14 high).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	High
1H	Bearish	Neutral	High
4H	Bearish	Neutral	Shrinking
1D	Strongly Bearish	Oversold	Low
1W	Bearish	Neutral	Low
Updated Feb 20, 10:30 GMT

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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