FXStreet (Mumbai) – The offered tone around the GBP stays intact, keeping the GBP/USD pair stays below 1.43 levels despite weaker-than-expected US GDP release.
Offered above 1.43
A minor jump to 1.4305 just ahead of the US data released was quickly undone even though the US economic growth slowed more than expected in the last quarter of 2015. The annualized GDP printed at 0.7%, compared to the estimate of 0.8%. Meanwhile, core PCE also printed lower than estimates.
Still, the GBP/USD pair remains below and has dropped to a fresh session low of 1.4265 as markets believe BOJ’s negative rate action pushes the probability of the BOE rate hike to near zero.
GBP/USD Technical Levels
The immediate resistance is seen at 1.4290 (5-DMA), which if taken out would open doors for a rally to 1.4351 (23.6% of 1.5230-1.4079). On the other hand, a break below 1.4253 (10-DMA), could send the prices lower to 1.4173 (Jan 26 low).
(Market News Provided by FXstreet)