GBP/USD up-move falters at 1.3100 handle, US GDP in focus

The GBP/USD pair failed to extend the up-move further beyond the 1.3100 handle and has now retreated around 25-30 pips from session tops touched in the past hour.

After yesterday's sharp pull-back of over 100-pips from fresh 10-month highs, the pair regained some fresh traction on Friday and attempted a move back above the 1.3100 handle. The pair, however, shrugged off a mildly softer tone around the US Dollar and met with some fresh supply at higher levels as investors seemed to hold back from initiating fresh bullish positions ahead of the advance US GDP print.

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The US economy is expected to have expanded by 1.3% during the second quarter of 2017, below 1.9% growth recorded in the previous quarter. With investors' dovish assessment of Wednesday's FOMC statement, a disappointing figure would attract some fresh USD selling pressure and help the pair to build on its recent bullish trajectory.

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Technical levels to watch

Immediate support is pegged near mid-1.3000s, below which the pair is likely to accelerate the fall towards the key 1.30 psychological mark before eventually dropping to 1.2970-65 horizontal support. On the upside, the 1.3100 handle remains immediate supply zone, which if conquered might now lift the pair beyond 1.3125 intermediate resistance towards mid-1.3100s.