Sterling holds support at previous lows, continues to find aggressive bids near 1.5000

FXstreet.com (Barcelona) - After trading as low as 1.5013 yesterday, the GBP/USD found aggressive bids and reversed sharply higher to close the day up 64 pips at 1.5107, all after the UK GDP print came in as expected.

According to Catherine Stephan at, BNP Paribas, “Output rose by 0.3% q/q in Q1 2013 after falling by 0.3% the previous quarter. On year-on-year basis, GDP increased by 0.6%. The main contribution to growth was the changes in inventories (+0.4 pp). Household final consumption expenditure rose also further. Domestic demand had thus offset the negative contribution of net exports to the GDP growth (-0.1 pp).”

According to Val Bednarik of FXStreet.com, “the GBP/USD also recovered ground on dollar downside correction, but the pair found sellers in the 1.5130 Fibonacci resistance, keeping latest short term bullish run as a mere correction. The hourly chart shows indicators heading south from oversold readings, and price above a bullish 20 SMA, indicating no time to sell or buy: price needs to break below 1.5050 to regain the downside, while steady gains above 1.5130 will point for further recoveries, up to 1.5170/80 price zone.”