25 Jul 2014
GBP/USD got depressed by GDP data meeting expectations
FXStreet (Moscow) - GBP/USD slid to 1.6970 area following the euro moves, and the UK GDP release helped the pair reach 1.6960 area.
GDP is out
While the Germans IFO numbers are out, the market focus turned to UK GDP numbers for the second quarter. The pound has already got several hits from previously released data, thus, the growth numbers were the last chance to recover the losses. The preliminary GDP figures came out at as expected at 0.8% q/q, 3.1% y/y, thus, killing the last hope for the pound. The pair immediately reacted with a slide to 1.6966, as the data confirmed the market over exaggerated the strength of British economy. The next target for the pound may lie at 1.6951 area, however, it looks like the momentum is already fading as the pair came back to 1.6980 area.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.7002, with support below at 1.6951, 1.6914 and 1.6863 with resistance above at 1.7039, 1.7090, and 1.7127. Hourly Moving Averages are mixed, with the 200SMA bearish at 1.7080, and the daily 20EMA bearish at 1.7068. Hourly RSI is bearish at 44.
GDP is out
While the Germans IFO numbers are out, the market focus turned to UK GDP numbers for the second quarter. The pound has already got several hits from previously released data, thus, the growth numbers were the last chance to recover the losses. The preliminary GDP figures came out at as expected at 0.8% q/q, 3.1% y/y, thus, killing the last hope for the pound. The pair immediately reacted with a slide to 1.6966, as the data confirmed the market over exaggerated the strength of British economy. The next target for the pound may lie at 1.6951 area, however, it looks like the momentum is already fading as the pair came back to 1.6980 area.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.7002, with support below at 1.6951, 1.6914 and 1.6863 with resistance above at 1.7039, 1.7090, and 1.7127. Hourly Moving Averages are mixed, with the 200SMA bearish at 1.7080, and the daily 20EMA bearish at 1.7068. Hourly RSI is bearish at 44.