GBP/USD soars to target 1.6040 consolidation

FXstreet.com (Chicago) - GBP/USD bounced off 1.5999 lows and attempts to consolidate above the 1.6040 zone in the afternoon of the American trading session.

Data recap

Price action reveals a strong pound against the greenback throughout today’s session. Market participants reacted positively to matched GDP results in the UK with the GDP (QoQ) at 0.7% vs. past 0.3%. In the US, the GDP annualized failed to meet expectations and was 2.5% vs. estimates at 2.6%. Continuing jobless claims fell to 2.823 vs. past 2.788 and projections at 2.840M. Initial jobless claims were 305K vs. past 310K and estimates at 310K. Finally, pending home sales in the US decreased to 5.8% vs. past 6.7%.

GBP/USD Technical Levels


Technically speaking, the pair is offered at 1.6037 and oscillates between supports aligned at 1.5976 (September 25th lows), 1.5936 (September 17th highs) followed by 1.5881 (September 16th lows) and resistances set at 1.6066 (September 23rd highs), 1.6116 (September 18th lows) followed by 1.6163 (September 18th highs). According to the FXstreet.com trend index, the pair is strongly bearish on one-hour timeframe below the EMA20 but still above the upward trendline originating last July 9th.

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