GBP/USD fails to resist above 1.3100, shrugs-off UK GDP

The GBP/USD pair faded UK-GDP led spike to 1.3146 and retreated thereon, now flirting with daily lows reached below 1.31 handle in the last hour.

GBP/USD: Focus shifts to FOMC statement

Currently, GBP/USD trade -0.27% lower at 1.3097, hovering within a striking distance of fresh session lows struck at 1.3090 some minutes ago. The bulls were left unimpressed by better-than expected UK Q2 GDP figures, as Brexit-related uncertainties continue to cloud the UK economic outlook.

The UK prelim GDP estimate rose 0.6% q/q in the second quarter of 2016, up from 0.4% booked in the first quarter, while beating estimates of a rise of 0.5% in June quarter.

Moreover, the demand for the greenback is on the rise against most of its peers, as markets favour the US currency amid expectations of a slightly hawkish FOMC statement, given the latest upbeat fundamentals, including the NFP report.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3165 (10-DMA), above which 1.3200 (round figure) would be tested. On the flip side, support is seen at 1.3065/50 (daily S1/ psychological levels) below that at 1.2998 (daily S2).