GBP/USD trying to vault over 1.31 ahead of UK GDP figures, US consumption expenditure for Friday

The GBP/USD is trying to clear some ground above the 1.3100 key level ahead of Friday's European market session.

This week has seen the Sterling shuffle steadily lower against the Greenback as Brexit concerns continue to weigh on investor sentiment in the UK. The Bank of England (BoE) also released their latest Financial Stability Report (FSR) this week, and the FSR's focus on potential Brexit concerns kept the GBP on the bearish side.

Friday brings GDP figures for the UK, dropping at 08:30 GMT, and the y/y GDP for the first quarter is expected to hold steady at 1.2%. Mortgage Approvals will also be dropping at the same time, forecast at 62.2 thousand, with the previous reading sitting at 62.45 thousand.

The upcoming US session also brings the US Consumption Expenditure price index, due at 12:30 GMT and expected to tick up slightly from 1.8% to 1.9%. The Greenback has been grinding steadily higher this week across the broader market, and a positive showing for consumption spending will help push the USD into a higher level to cap off the week, which could see the GBP/USD falling into yet another fresh low for 2018.

GBP/USD levels to watch

As noted by FXStreet's own Valeria Bednarik on the Sterling's technical outlook, "the 4 hours chart for the pair shows that it's developing well below a bearish 20 SMA, while technical indicators hold within oversold readings, the Momentum recovering modestly and the RSI consolidating around 26, favoring additional declines ahead on a break below the mentioned yearly low."

Support levels: 1.3050 1.3010 1.2970

Resistance levels: 1.3105 1.3140 1.3185