GBP/USD sidelined below 1.3000 ahead of GDP

Pablo Piovano FXStreet

The Sterling is posting meagre gains vs. its American peer on Friday, taking GBP/USD to the 1.2975/80 band at the end of the Asian session.

GBP/USD focus on UK GDP

The pair is extending its consolidative theme at the end of the week, finding decent support around 1.2920 (Monday’s low) while the upside seems to be so far capped in the mid-1.3000s.

Alternating risk trends, an erratic performance of the greenback and absence of relevant catalysts have been behind the pair’s prices action throughout the week, while dovish comments by BoE’s M.Shafik has reminded markets that the door for further easing remains open.

Later in the UK docket, house prices tracked by the Nationwide index are due, while Q2 GDP figures are expected to come in unchanged from the previous revision (2.2% YoY, 0.6% QoQ) and the Index of Services (0.3% exp.) will keep gauging the sector post-Brexit.

Across the pond, US inflation figures tracked by the PCE, Personal Income/Spending and the final reading of the Consumer Sentiment by the Reuters/Michigan Index will be in the spotlight along with the speech by Dallas Fed R.Kaplan (2017 voter, neutral).

GBP/USD levels to consider

As of writing the pair is flat at 1.2967 facing the next support at 1.2912 (low Sep.23) ahead of 1.2863 (low Aug.15) and then 1.2796 (2016 low Jul.6). On the other hand, a breakout of 1.3125 (high Sep.22) would open the door to 1.3135 (20-day sma) and finally 1.3447 (high Sep.6).

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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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