GBP/USD back below 1.3000 on UK GDP

The upside momentum the Sterling has quickly evaporated following the release of UK’ GDP figures, with GBP/USD now returning to the 1.2985/80 band.

GBP/USD fades the spike above 1.3000

Cable has rapidly faded the bull run beyond the 1.3000 mark after advanced UK’s GDP figures showed the economy is expected to expand 0.2% QoQ and 2.0% on a yearly basis, less than initially forecasted.

Further UK releases saw Index of Services expanding 0.2% in March and preliminary results from Business Investment showing an expansion of 0.6% in Q1. In addition, Mortgage Approvals tracked by BBA dropped to 40.75K in April, missing consensus.

GBP keeps the firm note despite the mixed results from the UK docket, always propped up by the persistent lack of traction around the buck.

GBP/USD levels to consider

As of writing the pair is gaining 0.21% at 1.2997 and a breakout of 1.3014 (spike May 25) would open the door to 1.3036 (high May 23) and finally 1.3051 (2017 high May 18). On the other hand, the next support lines up at 1.2924 (low May 24) followed by 1.2889 (low May 18) and then 1.2842 (low May 12).