Filed Under:
Forex pairs in this Article » GBP/USD (Edinburgh) - The selling interest is now dragging the GBP/USD to the area of 1.6585/80 after an unsuccessful attempt to follow through 1.6620.

GBP/USD softer after GDP numbers

The UK economy expanded at an annual pace of 2.8% and 0.7% inter-quarter. However the expansion was broadly in line with previous estimates, it seems that market participants were wishing for another upside surprise as evidenced by the knee-jerk to sub-1.6540 levels in the wake of the data. In the opinion of Ross Walker, Analyst at RBS, “Overall, the latest GDP data show economic growth being sustained over a full year and therefore provide the most compelling indication that the recovery is becoming more secure and a more 'normal' cycle is underway… The RBS forecast is for GDP growth of 2.7% in 2014. The Consensus Economics survey pitches the consensus forecast for 2014 UK GDP at 2.6% – among the major economies, only the US is expected to grow faster (2.8%)”.

GBP/USD levels to watch

At the moment the pair is down 0.01% at 1.6580 a break below 1.6471 (low Jan.27) would expose 1.6452 (low Jan.22). On the upside, the initial hurdle aligns at 1.6627 (high Jan.28) ahead of 1.6668 (2014 high Jan.24) and then 1.6700 (psychological level).
comments powered by Disqus