GBP/USD supported at 1.3015, eyes on UK Q2 GDP for fresh direction

Dhwani Mehta FXStreet

Fresh bids emerged once again near 1.3015 region in the Asian trades, allowing a tepid-bounce in GBP/USD back towards 1.3050 levels.

However, further upside appears to lack follow-through, as the bulls turn in a wait-and-see mode ahead of the UK Q2 prelim GDP release due out on Wednesday.

Attention turns to UK GDP report

The preliminary figures for the second quarter UK GDP are expected to have accelerated to 0.3% q/q versus 0.2% seen last, while on annualized basis, the pace of expansion seems to have eased to 1.7% versus 2.0%.

The mixed GDP numbers could keep the pullback restricted from 1.2930 levels, while the greenback finds fresh signs of life from strong US manufacturing PMIs. However, the main risk event for the major this week will remain the FOMC policy decision, with markets widely expecting the Fed to announce the start of the balance sheet normalization process from September.

In the meantime, Cable will take cues from the UK’s CBI industrial orders data and US consumer confidence gauge for some trading impetus. Also, of note will be BOE MPC member Haldane’s speech due later in the NA session.

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, 1.2972 (20-DMA) guards the next support of 1.2881 (50-DMA), below which 100-DMA support at 1.2830 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.

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