FxWirePro: GBP/USD gains some upside momentum but still bearish
The GBP/USD pair initially declined after the release of US GDP data but soon rebounded as the pair found support at 1.2114. However, further upside is expected to be limited as raising expectations that Federal Reserve …
The GBP/USD pair initially declined after the release of US GDP data but soon rebounded as the pair found support at 1.2114. However, further upside is expected to be limited as raising expectations that Federal Reserve will raise interest rates December is set to weigh on the currency pair.
US Gross domestic product expanded at an annualized growth rate of 2.9 percent, stronger the 2.5 percent forecast among economists polled, on a bounce in exports and inventories. The GDP grew at a 1.4 percent pace in the second quarter.
Currently, the currency pair is trading around 1.2166 levels, it is set to decline further towards 1.2140 later towards 1.2100 levels in the short term.
To the upside, the strong resistance can be seen at 1.2260 a break above this level would expose to cable to next resistance level at 1.2323.
To the downside immediate support can be seen at 1.2135, a break below will open the door towards next level at 1.2055.
