OctaFX | OctaFX Forex Broker
Open trading account
Back

GBP/USD is disappointed – GDP is not good enough to rise

FXStreet (Moscow) - GBP/USD spent European morning trading around 1.6270 in expectation of GDP data; the pair moved below 1.6250 post release.

When GDP is out

The pound was full of positive expectations on UK GDP revision, and it helped the pair settle above 1.6270 area before the release. The report came out mostly above expectations with growth at 0.9% q/q, and 3.2% y/y vs 0.8% q/q, and 3.2% y/y forecasted. The data confirmed, the British economy is still showing strong and stable recovery, and it is a good argument in favor of shift to tighter monetary stance. However, the numbers were not good enough to persuade the market to buy the pound – weaker than expected yearly total business investments could have played a role too. The pair moved to 1.6245 low post the release, but is hesitating to go lower. Next target to the downside may lie at 1.6211.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6244, with support below at 1.6211, 1.6182 and 1.6149 with resistance above at 1.6273, 1.6306 and 1.6335. Hourly Moving Averages are bearish, with the 200SMA at 1.6329, and the daily 20EMA bearish at 1.6347. Hourly RSI is bullish at 57.

EUR/GBP dips as UK GDP beats expectation

EUR/GBP has declined to fresh daily lows as UK GDP has come in better than expected QoQ for Q2.
Read more Previous

The three themes to dominate October markets - Societe Generale

Kit Juckes, Global Head of Currency Strategy at Societe Generale believes that three distinct themes are set to dominate October, US Monetary Policy, China slowdown and pressure on the ECB.
Read more Next
Start livechat