GBP/USD: Recovery post-UK GDP falters at 1.3030, Fed eyed

Dhwani Mehta FXStreet

Having tested 1.30 handle on the UK Q2 GDP release, the bulls regained momentum and pushed GBP/USD back towards 1.3050 levels, only to find fresh sellers near 1.3030 region.

GBP/USD: All eyes on UK Q2 GDP and Fed

The GBP/USD pair fell sharply to test 1.30 handle in a knee-jerk reaction to the in-line with estimates UK Q2 GDP release. However, the downward spike was somewhat reversed, as markets digest the UK Q2 GDP report and its implications on the next BOE’s policy move.

UK Q2 2017 prelim GDP rises to 0.3%, bang on expectations

Over the last hour, the recovery from near daily lows of 1.3003 lost pace, in the wake of resurgent USD demand witnessed across the board. Markets resort to taking profits off the table on their USD shorts ahead of the FOMC policy decision due later in the NA session. Meanwhile, the spot will take cues from the US new home sales data for fresh USD moves.

GBP/USD levels to consider

To the upside, resistances are aligned at 1.3053/57 (Jul 19 & 24 high), 1.3100 (round figure) and 1.3150 (psychological levels). On the flipside, 1.2977 (20-DMA) guards the next support of 1.2885 (50-DMA), below which 100-DMA support at 1.2835 lie.

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.

EUR/USD: Gains remain capped by 1.1650

EUR/USD remains in recovery-mode following the closing bell in Euroland on Wednesday, hovering around the 1.1650 zone amid renewed downside pressure on the US Dollar and a marginal improvement in the global sentiment.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.