Forex: GBP/USD flat below 1.6050 ahead of UK GDP

FXstreet.com (San Francisco) - GBPUSD remains flat below 1.6050 ahead of today's second estimate of Q3 GDP data, expected to show the economy expanded 1.0% q/q. "Barring a major surprise in the details behind the headline growth rate, the market is more focused on how the economy performs in 4Q after 3Q was driven by one-offs, especially the London Olympics," explains Rabobank International.

Technically speaking, Valeria Bednarik, Chief Analyst at FXstreet.com says: "In the 4 hours chart, indicators turned north in positive territory, which suggest more gains ahead: the roof of the daily descendant channel is located today around 1.6080, probable target for the pair if local share markets undone yesterday's negative start."

Supporting the bearish case, Chris Tevere, CMT, Senior Technical Strategist at FOREX.com notes of the cross: "Daily RSI broke below the key 40 level earlier in November, which implies general weakness in GBPUSD's uptrend. Additionally, RSI still remains below the 60/65 level which often proves resistive in downtrends."

Should GBPUSD extend gains from there, resistance is noted at 1.6110 (May 7 low), then 1.6135 (Sep 26 low) and 1.6160 (Sep 20 low). Bearish targets lie at 1.5990 (Feb 29 high) and 1.5930 (Feb 8 high).