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GBP/USD recovers on upbeat OBR economic forecasts

FXStreet (Mumbai) - GBP/USD jumped 30 pips or so to near 1.51 handle after the UK Office for Budget Responsibility (OBR) revised its Uk GDP forecasts higher.

Supported at 1.5056

Sterling clocked a low of 1.5056 and remained around the same before jumping to 1.5096 on OBR’s upward revision of the 2016 and 2017 GDP forecast. The OBR’s labor force forecast also point to tightening of the labor market; something which the BOE actively considers while deciding on the liftoff.

However, the momentum appears to have stalled near 1.5090 ahead of the key data sets in the US – personal spending report, durable goods orders, weekly jobless claims.

GBP/USD Technical Levels

At 1.5090, the immediate support is seen at 1.5087 (61.8% of Apr-Jun rally), under which the pair could re-test the daily low of 1.5056. A break lower would expose 1.50 handle. On the other side, resistance is seen at 1.5107 (hourly 50-MA) and 1.5120 (23.6% of 1.5336-1.5053), above which the pair could rise to 1.5163 (Sep 4 low).

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