GBP/USD outlook: Rises above psychological 1.30 barrier following better than expected UK GDP data
|GBP/USD
Cable surged through psychological 1.30 barrier on Thursday and hit the highest since mid-April 2022, after receiving fresh boost from better than expected UK May GDP data.
UK economy contracted by 0.1% in May, beating expectations for 0.3% contraction, adding to pound’s positive sentiment on further weakening of the US dollar, following below-forecast US June CPI.
Recent break of 200WMA (1.2882) and lift above 1.30 level, generate bullish signals which will be verified on weekly close above these levels and open way for extension through initial barrier at 1.3140 (monthly cloud) top), towards 1.3328 (Fibo 76.4% retracement of 1.4249/1.0348 downtrend).
Firmly bullish structure on daily chart could be obstructed by strongly overbought conditions, which may keep bulls on hold for price adjustment.
Dips should provide better levels to re-enter bullish market, with rising daily Tenkan-sen (1.2860) expected to hold and keep larger bulls intact.
Res: 1.3105; 1.3140; 1.3203; 1.3264.
Sup: 1.3000; 1.2932; 1.2882; 1.2860.
Interested in GBP/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.