GBP/USD drops below 1.33 as USD extends gains on strong data

• US GDP growth in Q4 beats expectations.
• Chicago PMI rises to its best level in more than a year.  
• US Dollar Index turns positive on the day above 96.

The GBP/USD pair failed to hold above the 1.33 mark on Thursday after today macroeconomic data releases from the United States helped the greenback start retracing this week’s losses. As of writing, the pair was trading at 1.3285, losing 0.18% on a daily basis.

The U.S. Bureau of Economic Analysis today reported that according to its initial estimate, the real GDP is seen expanding by 2.6% on a yearly basis in the fourth quarter compared to the market expectation of 2.3%. The US Dollar Index, which recovered above 96 on the GDP data, extended its rebound after the Chicago PMI improved to 64.7 in February from 56.7 in January. At the moment, the DXY is up 0.15% 96.25.

Earlier in the day, British Brexit Secretary Barclay  said that there was no consensus in Parliament about a second referendum. On other Brexit-related headlines, the European Union’s Chief Brexit Negotiator Barnier argued that an extension to the negotiation period was possible but questioned what purpose it would serve. “An extension must be not to delay the problem but solve the problem in the House of Commons,” Barnier explained.

Technical levels to consider