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GBP/USD keeps falling, focus shifts to UK GDP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 26, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The offered tone on the GBP keeps growing bigger heading into mid-European trades, with GBP/USD trying hard to recover lost ground.

    GBP/USD supported at hourly S2

    The GBP/USD pair trades -0.34% lower at 1.5076, having posted fresh session lows at 1.5068 some minutes ago. The British currency remains pressured against its US counterpart as traders shift their attention towards Friday’s UK GDP second estimate, as today’s UK docket remains absolutely empty.

    Markets are expecting the UK's third-quarter GDP to show the economy slowed to 0.5% from 0.7% seen in Q2. The slower pace of growth is expected due to weak trade, which may overshadow solid retail sales growth in the UK.

    Moreover, broad based US dollar strength and the downbeats comments from BOE policymakers on the UK economy continue to weigh heavily on the major.

    Looking towards the US session, markets aren’t expected to provide much in terms of fundamental drivers as the US starts the Thanksgiving holiday.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5123 (5-DMA), above which 1.5174 (10-DMA) would be tested. On the flip side, support is seen at 1.5051 (Nov 24 Low) below which it could extend losses to 1.5038 (Nov 9 Low).
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