GBP/USD spikes to 1.3170 on upbeat UK GDP

• Healthy GDP figures boost GBP
• Case for BoE rate hike next month revived
• Brexit concerns still lingers

The British Pound gathered fresh upside traction following GDP figures on Wednesday, lifting GBP/USD to the area of daily tops around 1.3170.

GBP/USD supported around 1.3110

After bottoming out in the 1.3110 area earlier in the session, Cable met a wave of buying orders following the release of advanced figures for UK GDP during the July-September period.

In fact, the UK economy is now expected to expand at a healthy 0.4% inter-quarter and 1.5% over the last twelve months, both prints surpassing initial consensus. Other data saw BBA’s mortgage approvals dropping to 41.6K and the index of services gaining 0.4%.

Positive and unexpectedly higher GDP readings seem to reinforce the case for a rate hike by the Bank of England at the November meeting, somewhat leaving behind yesterday’s dovish comments by Sir J.Cunliffe.

GBP/USD levels to consider

As of writing the pair is gaining 0.18% at 1.3160 and a breakout of 1.3203 (10-day sma) would open the door to 1.3228 (high Oct.19) and finally 1.3262 (23.6% Fibo of the 2017 up move). On the other hand, the next support emerges at 1.3087 (low Oct.20) seconded by 1.3055 (100-day sma) and then 1.3027 (low Oct.6).