GBP/USD analysis: nearing this year's high, 1.3180 next bullish target

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3114

The GBP/USD pair settles above the 1.3100, its highest for the week, compliments to a neutral Fed monetary policy statement. The pair recovered from a daily low of 1.2998, achieved early London. UK data released this Wednesday failed to boost the Pound as the preliminary Q2 GDP figures were soft, as expected. The kingdom is estimated to have grew by 0.3% in the three months to June, with the annual rate resulting then at 1.7%. While the figures were in-line with market's forecast, were also supportive of the current on-hold stance of the BOE, cooling further hopes for a rate hike in the UK. After the release, Finance Minister Hammond, said that while the UK can be proud of the continued growth seen over the past four years, they now need to focus on "restoring productivity growth to deliver higher wages and living standards for people across the country." Anyway, gains came as usual on the back of dollar's broad weakness, with the pair now poised to challenge its yearly high, set this July at 1.3125. The 4 hours chart shows that the price has accelerated above a now bullish 20 SMA, whilst the RSI indicator advances around 69, although the Momentum indicator remains flat within positive territory, all of which supports some further gains ahead. A break above the mentioned yearly high exposes the 1.3180 price zone, where the pair has multiple daily highs and lows from August/September 2016.

Support levels: 1.3090 1.3050 1.3010

Resistance levels: 1.3125 1.3180 1.3230

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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