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22 May 2014
GBP/USD reacts negatively to UK GDP
FXStreet (Córdoba) - The GBP/USD reacted negatively to in line with expectations UK GDP and dropped to fresh daily lows immediately after the release.
The pound weakened after data showed the UK economy grew 0.8% during the first quarter of 2014 and 3.1% YoY, with both figures matching market’s expectations. The GBP/USD retreated from a daily high of 1.6916 to a low of 1.6865 in a matter of minutes as investors had probably readjust their expectations for a higher number after yesterday’s strong retail sales figures. Separated data showed a larger than expected UK Apr public finance deficit - £9.631B vs £3.500B.
GBP/USD levels to watch
At time of writing, the GBP/USD is trading at the 1.6870 zone, 0.16% below its opening price with immediate supports seen at 1.6865 (May 22 low), 1.6831 (May 21 low) and 1.6800 (psychological level). On the other hand, resistances are seen at 1.6920 (May 21 high), 1.6937 (May 9 high) and 1.6985 (May 7 high) ahead of the major 1.7000 psychological level.
The pound weakened after data showed the UK economy grew 0.8% during the first quarter of 2014 and 3.1% YoY, with both figures matching market’s expectations. The GBP/USD retreated from a daily high of 1.6916 to a low of 1.6865 in a matter of minutes as investors had probably readjust their expectations for a higher number after yesterday’s strong retail sales figures. Separated data showed a larger than expected UK Apr public finance deficit - £9.631B vs £3.500B.
GBP/USD levels to watch
At time of writing, the GBP/USD is trading at the 1.6870 zone, 0.16% below its opening price with immediate supports seen at 1.6865 (May 22 low), 1.6831 (May 21 low) and 1.6800 (psychological level). On the other hand, resistances are seen at 1.6920 (May 21 high), 1.6937 (May 9 high) and 1.6985 (May 7 high) ahead of the major 1.7000 psychological level.