The GBP/USD pair gradually extends its bounce from a dip to 1.3170 levels and looks to take on the recent upmove beyond 1.32 handle, in the wake of broad USD correction.
GBP/USD: All eyes on UK, US GDP
The spot finally brought an end to its overnight consolidative mode towards Asia close, as the bulls regained poise amid better sentiment towards risk assets such as the equities, GBP etc.
More so, expectations of upbeat UK CBI industrial orders data combined with a broad based USD retreat from two-week tops, also helped push the major back onto 1.32 handle. Meanwhile, the USD index eases to 93.63, having posted 2-week highs at 93.78 levels.
Cable staged a solid comeback on Friday, as markets looked past poor UK retail sales report and cheered renewed optimism witnessed, following the comments from the UK PM May, citing that the UK is ready to honor the financial commitment made to the EU at a joint press conference with European Commission President Jean-Claude Juncker.
Meanwhile, the pound remains on the front foot heading into a big week ahead, with a plenty of risk events up on the sleeves, including the UK prelim GDP report, US durable good and advance GDP releases.
GBP/USD Technical View
Valeria Bednarik, Chief Analyst at FXStreet noted: “From a technical point of view, the daily chart shows that the recovery was not enough to change the latest negative bias, as the pair continues developing below a sharply bearish 20 DMA, whilst technical indicators hold below their mid-lines, although with no clear directional strength. In the 4 hours chart, the pair presents a neutral stance, trading a couple of pips above the 50% retracement of its latest bullish run and a flat 20 SMA, while technical indicators turned flat around their mid-lines. Support levels: 1.3145 1.3090 1.3050 Resistance levels: 1.3220 1.3260 1.3300.”
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