Key Points
- The British Pound after correcting higher faced resistance near 1.3090 against the US Dollar and moved down.
- There was a break below a crucial ascending channel pattern with support at 1.3030 on the hourly chart of GBPUSD.
- Today in the UK, the Gross Domestic Product (prelim) for Q2 2017 was released by the National Statistics.
- The outcome was around the forecast, as there was an increase of 1.7% in the GDP (YoY).
GBPUSD Technical Analysis
The British Pound maintained its bullish bias from the 1.2935 low and traded above 1.3000 against the US Dollar. The GBPUSD pair traded as high as 1.3087 where it faced resistance and started a downside move.
There was a downside move below 1.3050 and the pair broke a crucial ascending channel pattern with support at 1.3030 on the hourly chart and the 21 hourly simple moving average.
The pair also cleared the 38.2% Fib retracement level of the last wave from the 1.2934 low to 1.3087 high, which could ignite more declines in the near term.
UK Gross Domestic Product
Today in the UK, the Gross Domestic Product (prelim) for Q2 2017 was released by the National Statistics. The market was positioned for an increase of 1.7% compared with the same quarter a year ago.
The actual result was around the forecast, as there was an increase of 1.7% in the GDP. In terms of the quarterly change, there was a rise of 0.3%, just as the market expected. The report added that:
The growth in Quarter 2 2017 was driven by services, which grew by 0.5% compared with 0.1% growth in Quarter 1 (Jan to Mar) 2017.
Overall, the GBPUSD may continue to move down and could even test the 1.2980 support area in the near term.
