FXStreet (Mumbai) – The British pound wiped out entire gains and turned in red versus the US dollar in the European session, with GBP/USD testing session lows, after the second estimate of the Q1 2015 UK GDP was left unrevised at 0.3% against expectations of a slight upward revision.
GBP/USD drops from 1.5365
The GBP/USD pair modestly lower at 1.5348, slipping from 1.5369-1.5365 zone post the UK GDP data release. The cable erased gains and edged lower towards session lows after the pound was negatively impacted following disappointing second revision to the Q1 GDP figures from the UK.
The second revision to the UK gross domestic product (GDP) failed to surprise on the upside, confirming the economy decelerated by as much as half at the start of this year to a growth of 0.3%, the Office for National Statistics (ONS) informed on Thursday.
ONS Chief Economist Joes Grice noted, “Today’s figure of 0.3% growth in GDP in the first quarter of 2015 reflects small upward revisions to production and construction, offset by a downward revision to services.” “It confirms the picture of somewhat weaker growth in the first quarter than in recent ones. But no single quarter’s figures should be given undue weight.”
Later in the day, markets will focus on the US macro release which may provide further impetus to the pair.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5400 above which gains could be extended to 1.5439 (May 27 High) levels. On the flip side, support is seen at 1.5339 (Today’s Low) below which it could extend losses to 1.5325 (April 29 Low) levels.
(Market News Provided by FXstreet)