GBP/USD Unmoved After US GDP Release, Holds in Red Below 1.4650
GBP/USD Unmoved After US GDP Release, Holds in Red Below 1.4650
The GBP/USD pair held steady below 1.4650, with a minor downward reaction to 1.4635, after the release of revised US GDP data for Q1 2016
According to the data released just a while ago, US economic growth for the first quarter of 2016 was revised upward to show a growth of 0.8% on an annualized rate as compared to 0.5% estimated in the original release. Given the US Federal Reserve's readiness to further raise interest rates if the incoming data continues to point steady economic recovery, today's macro data, ahead of next week's monthly jobs report for May, contributes little towards clearing doubts over an imminent rate-hike in June.
Moreover, with less than a month remaining for EU referendum vote, the GBP/USD pair had a little downward reaction to the data on receding fears of 'Brexit' and its implication on the UK economy.
Technical outlook
Jason Sen, Director DayTradeIdeas.com notes, “GBPUSD holding above 1.4665/60 re-targets 1.4690/95 then this week's high at 1.4728/38. As we know, May highs & very important 200 day moving average resistance at 1.4762/69 is the biggest challenge of the day. Try shorts with stops above 1.4800. A break (& WEEKLY close for confirmation) above 1.4780 however is a buy signal for next week & targets 1.4803/12 then 1.4842/45, perhaps as far as 1.4880/85."
"Good support at 1.4635/30 could hold the downside again. Longs need stops below 1.4610 but we then look for a buying opportunity at 1.4585/75, with stops below 1.4550."
