• US economic growth stood at 3.2% annualized pace during the first quarter of 2019.
• USD bulls seemed unimpressed by the stellar GDP print and helped limit the downside.
The GBP/USD pair finally broke out of its intraday consolidative range and refreshed session lows, around the 1.2875 region post-US GDP, albeit quickly recovered few pips thereafter.
The pair did witness a modest intraday uptick, albeit lacked any strong follow-through and remained capped below the 1.2915-20 supply zone in wake of the lack of progress in the UK cross-party talks to break the Brexit deadlock.
Meanwhile, the US Dollar reversed an early dip and regained positive traction following the release of advance (first estimate) of the US GDP report, showing that the economic growth stood at 3.2% annualized pace during the first quarter of 2019.
The reading was better than the previous quarter’s final reading of 2.2% growth and surpassed even the most optimistic estimates and might now force investors to start pricing in a hawkish shift in the FOMC’s outlook when it announces its latest monetary policy update next Wednesday.
However, the market reaction to the stellar GDP print turned out to be rather muted and failed to provide a goodish lift to the greenback, which eventually helped the pair to hold its neck above two-month lows set in the previous session.
Technical levels to watch