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Forex: GBP/USD maintains firm bid in Asia trade, UK GDP data on tap

FXstreet.com (Barcelona) - The Sterling is well bid thus far during Asia trade, up another 50 pips at 1.5277. The coming session will be worth watching as UK GDP will be released at 8:30 GMT. The GDP number could be the catalyst

According to Kathy Lien of BK Asset Management, “It is no secret that the U.K. economy is weak but the question before us is whether the U.K. fell back into recession in the first quarter and if so, will the Bank of England finally ease. Based on economist expectations GDP grew 0.1% in Q1 and we agree that the economy expanded between January and March because retail sales and trade activity improved.”

She went on to add, “However Bank of England policymaker Weale said earlier this week that there is a risk GDP declined in Q1 and if he is right that would mean the U.K. economy fell into a triple dip recession. A drop in GDP growth should drive the GBP/USD below 1.52 and send the pair towards 1.50."

The daily chart still appears to be forming a bear flag, but continues to hold the upward support trend line which has been intact since early March. First resistance comes in at 1.5349 (the short term downtrend line connecting recent high), followed by 1.5360 (supply candle on daily chart). Initial support sits at 1.5290 (previous day high), followed by 1.5245 (uptrend support line).

Forex: AUD/USD drifting higher towards resistance at 1.0320

The AUD is drifting higher during Asia trade, up another 30 pips at 1.0309 last. The economic calendar is light with both Australia and New Zealand closed for bank holidays. So far initial resistance at 1.0320 is capping further advances.
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Forex: NZD/USD shoots above 0.85 on USD weakness

NZD/USD has broken to fresh weekly highs last at 0.8530 on thin Asian markets as New Zealand and Australia are both closed for holidays. The pair is up +1.38% for the week, following yesterday's RBNZ rate statement leaving interest rates on hold for the rest of 2013, the central bank said.
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