GBP/USD Recovers Losses, but Stays Below 1.46 on UK GDP
The British pound recovers losses and regains bids versus its American counterpart in the European morning, with GBP/USD re-attempting a break above 1.46 handle.
GBP/USD bounces-off 1.4550
The GBP/USD pair catches bid to now trade marginally higher at 1.4590, reversing a brief dip to 1.4551, session lows. The bulls appear to fight back control as pound received a fresh boost from in line with expectations UK Q1 GDP first estimate.
The UK GDP grew 0.4% in the first quarter, slower than the 0.6% pace in the last three months of 2015. While on annualized basis, the economy grew 2.1%, faster than the 2% rate expected and at the same rate as in the previous quarter.
However, the upside seems capped as the data shows that the ongoing concerns surrounding Brexit continues to weigh on the country’s economic growth. With the data out of the way, the main focus now remains on the FOMC decision due later in the NY session.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4600 (round number), above which 1.4646/70 (daily R1/ Feb 4 High) would be tested. On the flip side, support is seen at 1.4500 (psychological resistance turned support) below that at 1.4486/46 (Apr 26 low & 1h 100-SMA).