GBP/USD: Bulls rescued by upbeat Q3 UK GDP, current account

A better-than expected third quarter final GDP estimate and current account numbers from the UK economy offered the much-needed respite to the GBP bulls, lifting GBP/USD from fresh seven-week troughs reached at 1.2247 just before the data release.

The UK Q3 GDP final arrived at 0.6% q/q vs 0.5% and 0.5% previous, while the current account deficit shrunk in Q3, coming in at GBP-25.5bln versus GBP-28.3bln expected.

Moreover, the greenback failed to sustain the recovery against its major rivals, and resumed its profit-taking slide, aiding the recovery in cable from multi-week lows. The spot is currently seen reversing losses to now trade at 1.2283, almost unchanged on the day.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2300 (round figure), 1.2338 (5-DMA) and 1.2379 (Dec 22 high). While supports are seen at 1.2206 (daily S2) and 1.2141 (Oct 31 low) and below that at 1.2100 (zero figure).