GBP/USD flat-lined around 1.3130, awaits UK GDP

The pound recovered losses and now trades around a flat-line versus its American peer in early Europe, keeping GBP/USD in a tight range around 1.3130 levels.

GBP/USD eyes UK GDP for fresh impetus

Currently, GBP/USD trade almost unchanged at 1.3133, having found good support ahead of 1.31 handle. The cable is seen treading waters ahead of the UK preliminary GDP report, as markets doubt is the UK economy would grow in the second (Brexit) quarter. The UK prelim GDP is expected to come in at 0.5% in Q2 versus 0.4% seen in the previous quarter.

Moreover, a typical calm before the Fed decision persist this session, as investors refrain from placing any directional bet on the major. The Fed is expected to keep rates steady this month, while a tilt towards the hawkish side may be noticed in its statement in wake of the recent upbeat US economic releases.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3168 (10-DMA), above which 1.3200 (round figure) would be tested. On the flip side, support is seen at 1.3118/06 (20-DMA/daily low) below that at 1.3050 (psychological levels).