- Cable rebounds from the 1.3340 region on GDP figures.
- The correction lower in USD helps the pair to regain 1.3365/70 band.
- UK’s advanced Q1 GDP came in at 0.1% QoQ and 1.2% YoY.
The Sterling gathered some traction today and is now pushing GBP/USD to the 1.3365/70 band, moving away from earlier lows in the 1.3340 region.
GBP/USD finds support near 1.3340
The knee-jerk in the greenback is now allowing Cable to bounce off earlier session lows in the 1.3340 region.
The British Pound has practically ignored today’s flash readings of the UK GDP figures, showing the economy is expected to expand at an annualized 1.2% during the January-March period and 0.1% inter-quarter, matching initial estimates.
Further data in the UK docket noted Business Investment is seen contracting 0.2% in Q1 and expandind 2.0% on a yearly basis. Additionally, Index of Services matched expectations at 0.3%, down from the previous 0.5% gain.
In the meantime, Cable remains under pressure and trades close to the critical support at 1.3300 the figure, still unable to gather convincing traction amidst a stronger buck, usual back and forths around Brexit and political uncertainty.
GBP/USD levels to consider
As of writing, the pair is losing 0.21% at 1.3352 facing initial contention at 1.3306 (2018 low May 23) seconded by 1.3302 (monthly low Dec.18) and finally 1.3039 (monthly low Nov.3 2017). On the upside, a break above 1.3452 (10-day sma) would open the door to 1.3457 (low Jan.11) and then 1.3575 (200-day sma).
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