FxWirePro: GBP/USD slides as dollar strengthens after US data

• GBP/USD slipped lower on Thursday as the dollar strengthened following stronger-than-expected U.S. GDP growth and a surprising drop in weekly jobless claims..

• The Commerce Department’s Bureau of Economic Analysis (BEA) on Thursday reported that gross domestic product grew at an annualized rate of 3.8% last quarter, an upward revision from the previously estimated 3.3% growth in the second quarter.

•  New applications for unemployment benefits declined last week, though the labor market continues to show signs of weakness with sluggish hiring..

• The Labor Department reported on Thursday that initial claims for state unemployment benefits fell by 14,000 to a seasonally adjusted 218,000 for the week ended September 20, below the 235,000 expected in a Reuters poll of economists.

According to the CME FedWatch tool, markets now assign an 81% chance of a Federal Reserve rate cut in October, down from 90% prior to the release of the jobs data.

. • At GMT 14:28, the pound was down  0.57% to 1.3369 against the dollar.

•   Immediate resistance is located at 1.3497(38.2%fib), any close above will push the pair towards 1.3528(SMA 20)

•  Strong support is seen at 1.3345(Lower BB) and break below could take the pair towards 1.3269(50%fib).

  Recommendation: Good to sell around 1.3400 with stop loss of 1.3480 and target price of 1.3300