GBP/USD manages to hold above 1.38 handle post-US GDP

   •  US Q4 GDP growth revised lower but does little to provide fresh impetus.
   •  GBP continues to be weighed down by Brexit uncertainties.

The GBP/USD pair remained heavily offered through the early NA session and had a rather muted reaction to the second estimate of the US Q4 GDP growth numbers.

The pair managed to hold its neck above the 1.3800 handle and moved little after the US real gross domestic product (GDP) was revised lower to 2.5% for the fourth quarter of 2017, from 2.6% estimated earlier. The reading was mostly in-line with consensus estimates and did little to provide any fresh impetus. 

Meanwhile, the British Pound continues to be weighed down by the Brexit uncertainty, with the release of EU draft Brexit proposal triggering the latest bout of selling since the mid-European session. 

It, however, remains to be seen if bulls are able to defend the 1.3800 handle or some fresh technical selling continues exerting some downward pressure on the major as traders now look forward to other second-tier US economic releases. 

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: “Technical readings in the 4 hours chart favor additional declines, as technical indicators maintain their sharp bearish slopes within negative territory now nearing oversold readings, while the price broke below all of its moving averages. Below 1.3800, the mentioned monthly low at 1.3764 comes next, while below this last 1.3730 becomes a likely bearish target for the upcoming sessions.”