- GBP/USD remained depressed for the second consecutive session amid stronger greenback.
- Wednesday’s mostly upbeat UK data extended some support and helped limit the downside.
- Investors now look forward to the US consumer inflation figures for a fresh trading impetus.
The GBP/USD pair maintained its offered tone below mid-1.3000s and had a muted reaction to the latest UK macro data.
The pair extended the previous day's intraday retracement slide of around 90 pips and remained depressed for the second consecutive session on Wednesday. The downtick was exclusively sponsored by some follow-through buying around the US dollar, with bulls largely shrugging off slightly better-than-expected UK GDP report.
The preliminary reading of the second quarter of 2020 UK GDP came in at -20.4% QoQ vs. -20.5% expected and -2.2% previous. On an annualized basis the figure stood at -21.7% vs. -22.4% expected and the -1.7% previous. Meanwhile, the UK economy recorded a strong growth of +8.7% in June as compared to +8.0% expected and +1.8% in May.
On the other hand, a decline in COVID-19 hospitalizations in the US strengthens investors' confidence that the pandemic was coming back under control in response to more restrictive measures. Adding to this, a strong pickup in the US Treasury bond yields pointed to the improving prospects for the US economic recovery, which, in turn, underpinned the greenback.
It will now be interesting to see if the GBP/USD pair is able to gain any meaningful traction or remains confined well within a one-week-old trading range. Later during the early North American session, the US consumer inflation figures might influence the USD price dynamics and produce some meaningful trading opportunities.
Technical levels to watch
|Today last price||1.3035|
|Today Daily Change||-0.0013|
|Today Daily Change %||-0.10|
|Today daily open||1.3048|
|Previous Daily High||1.3132|
|Previous Daily Low||1.3042|
|Previous Weekly High||1.3186|
|Previous Weekly Low||1.2982|
|Previous Monthly High||1.317|
|Previous Monthly Low||1.236|
|Daily Fibonacci 38.2%||1.3076|
|Daily Fibonacci 61.8%||1.3098|
|Daily Pivot Point S1||1.3016|
|Daily Pivot Point S2||1.2984|
|Daily Pivot Point S3||1.2925|
|Daily Pivot Point R1||1.3106|
|Daily Pivot Point R2||1.3164|
|Daily Pivot Point R3||1.3197|
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 assets. 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.