GBP/USD turns negative below 1.4700

The sterling has given away initial gains after the UK GDP figures today, leaving GBP/USD to meander in the 1.4690 area for the time being.

GBP/USD weaker post-data

The pair receded further after advanced UK’s GDP figures showed the economy has expanded at an annualized 2.1% during the first three months of the year (vs. 2.1% forecasted) and 0.4% QoQ. Further results saw Business Investment contracting more than expected 0.1% during the same period.

In the meantime, spot has now deflated from earlier 3-week tops near 1.4740, although momentum keeps pointing to an imminent challenge of the key area at 1.4770 (multi-month peaks posted on May 3).

GBP/USD levels to consider

As of writing the pair is losing 0.03% at 1.4891 and a breakdown of 1.4521 (20-day sma) would aim for 1.4378 (55-day sma) and finally 1.4330 (low May 16). On the flip side, the next hurdle aligns at 1.4739 (high May 26) ahead of 1.4770 (high May 3) and then 1.4815 (2016 high Jan.4).