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28 Jan 2014
GBP/USD dips to lows around 1.6540
FXstreet.com (Edinburgh) - The pound is now fading the initial upside, dragging the GBP/USD to post fresh intraday lows in the area of 1.6540/35.
GBP/USD GDP not strong enough?
There was no room for surprises in today’s data, with UK’s GDP matching estimates and expanding at an annual pace of 2.8% during the last three months of 2013. Market participants seemed a little disappointed in the wake of the release, as demonstrated by the correction lower to sub-1.6540 levels. In the opinion of Jacqui Douglas, Senior Global Strategist at TD Securities, “UK growth momentum still looks solid into 2014, where consensus estimates are pointing to 2.8% growth for the year, although that estimate continues to be revised higher every month. We may see marginal further upward revisions to the Bank of England’s GDP forecasts in the February Inflation Report, although the scope is limited after the last two reports already incorporated pretty substantial upgrades.
GBP/USD levels to watch
At the moment the pair is down 0.17% at 1.6552 a break below 1.6471 (low Jan.27) would expose 1.6452 (low Jan.22). On the upside, the initial hurdle aligns at 1.6627 (high Jan.28) ahead of 1.6668 (2014 high Jan.24) and then 1.6700 (psychological level).
GBP/USD GDP not strong enough?
There was no room for surprises in today’s data, with UK’s GDP matching estimates and expanding at an annual pace of 2.8% during the last three months of 2013. Market participants seemed a little disappointed in the wake of the release, as demonstrated by the correction lower to sub-1.6540 levels. In the opinion of Jacqui Douglas, Senior Global Strategist at TD Securities, “UK growth momentum still looks solid into 2014, where consensus estimates are pointing to 2.8% growth for the year, although that estimate continues to be revised higher every month. We may see marginal further upward revisions to the Bank of England’s GDP forecasts in the February Inflation Report, although the scope is limited after the last two reports already incorporated pretty substantial upgrades.
GBP/USD levels to watch
At the moment the pair is down 0.17% at 1.6552 a break below 1.6471 (low Jan.27) would expose 1.6452 (low Jan.22). On the upside, the initial hurdle aligns at 1.6627 (high Jan.28) ahead of 1.6668 (2014 high Jan.24) and then 1.6700 (psychological level).