“¢ US Q1 GDP growth stands at 2.0% as against 2.2% estimated.
“¢ A modest USD retracement offset by Brexit concerns and keeps GBP bulls on the defensive.
The GBP/USD pair maintained its offered tone through the early North-American session and is currently placed at session lows post-US GDP print.
The third and final release of US GDP growth figures showed that the economy expanded at an annualized pace of 2.0% during the first quarter of 2018, lower than 2.2% growth estimated in the preliminary release.
Softer headline reading was partly negated by better-than-expected GDP Price Index, coming in at 2.1% annualized pace for Q1 as compared to 1.9% anticipated and thus, did little to prompt any fresh US Dollar selling.
However, Brexit uncertainties, with investors waiting for fresh updates coming out of the crucial EU Summit, kept the GBP on the back-foot and the pair struggled near 7-1/2 month lows despite a modest USD retracement.
Currently hovering around 1.3075 region, investors now look forward to the BoE Chief Economist Andy Haldane’s scheduled speech, which along with comments by Atlanta Fed President Raphael Bostic might provide some impetus during the North-American session.
Technical outlook
Mario Blascak, FXStreet’s own European Chief Analyst writes: “The GBP/USD is likely to test 1.3030-1.3045 area near-term representing swing lows from October and November last year. With technical oscillators pointing downwards, the test of lower levels is likely on a daily chart. Breaking below psychological 1.3000 level will open the way for 1.2770 representing another swing low and 1.2660 representing 23.6% Fibonacci retracement of the above mentioned post-Brexit slump.”
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