GBP/USD: Volatile within range post-UK GDP

Dhwani Mehta FXStreet

The GBP/USD pair witnessed some volatility following the release of the UK growth numbers; however, the major keeps the range-trade intact above 5-DMA.

GBP/USD: Focus remains on US GDP, Yellen

Currently, GBP/USD trades +0.11% higher at 1.3207, bouncing-off a brief dip below 1.32 handle. The GBP/USD pair saw a knee-jerk upward spike on the release of UK Q2 GDP second estimate, which confirmed solid growth in the Brexit quarter. However the spike was quickly faded and the major retreated sharply towards 1.32 handle, before meeting fresh demand near 1.3210 region.

The UK GDP second estimate showed an increase of 0.6% q/q in the second quarter of 2016, up from 0.5% booked in the first quarter, while matching estimates of a rise of 0.6% in June quarter.

As expected the reaction the UK data was very limited, and the cable continues to trade in the familiar ranges on 1.32 handle, awaiting Fed Chair Yellen’s comments for fresh direction on the major. Besides, the US GDP figures will be also closely eyed for fresh insights on the US economic growth.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3248 (daily R1), above which 1.3300 (round figure) would be tested. On the flip side, support is seen at 1.3136/28 (10 & 50-DMA) below that at 1.3100 (round number).

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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