GBP/USD facing an active Friday with UK GDP, US CPI in the barrel

Friday sees a tense data docket for both the Sterling and the US Dollar.
The UK's GDP reading is going to mix well with the US' CPI release, promising plenty of volatility to cap off the week.

Joshua Gibson FXStreet

The GBP/USD is trading into 1.2830 heading into Friday's London market session after the US Dollar saw a resurgence in Thursday's latter half, taking the GBP/USD off the days high of 1.2911.

Friday sees the next round of GD figures for the UK, dropping at 08:30. The UK's GDP for 2018's second quarter is expected to bounce slightly, forecast to come in at 0.4% versus the previous quarter's 0.%. There is a good-sized docket of data for the GBP today, but market's primary focus will be on the GDP figures for the UK and the US' upcoming CPI reading.

The US Core CPI figure is expected to clock in at 2.3%, holding steady with the previous reading, and Friday promises to deliver a data-driven day for the GBP/USD to cap off the trading week.

GBP/USD levels to watch

The British Pound is clipping into bottom-of-the-barrel against the Greenback, and further downside is likely to kick into effect if today's GDP reading misses the mark, and as FXStreet's own Valeria Bednarik noted,"considering the Pound is out of market favor, lower lows for the year should be expected. The downward trend is firmly in place according to intraday technical readings, as in the 4 hours chart, it continues developing below a bearish 20 SMA, while technical indicators resumed their declines, with the Momentum nearing weekly lows and the RSI at 27, with no signs of changing course."

Support levels: 1.2810 1.2770 1.2730

Resistance levels: 1.2875 1.2920 1.2960

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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