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GBP/USD cheers US GDP report, trims losses

FXStreet (Mumbai) - The selling in the GBP/USD appears to have halted after the commerce department in the US revised the Q2 GDP higher to 3.9%.

US GDP positive for risk assets?

Risk assets extended the gains after the US GDP was revised higher on account of stronger consumption. Sterling, which was hammered to a 4-1/2 month low ahead of the report, recovered slightly to trade around 1.5180 levels.

Moreover, the data pushed up two-year treasury yields (mimics rate hike bets) higher. Consequently, Sterling managed to take back few pips as a rise in rate hike bets and risk-on rally markets also means a BOE rate hike could be near.

GBP/USD Technical Levels

The immediate support is seen directly at 1.51 levels, under which the pair may find support immediately around 1.5087 (61.8% of Apr-June rally). On the other side, resistance is seen at 1.52 and 1.52 60 (daily high).

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