FXStreet (Mumbai) – The US dollar is being sold ahead of the monthly closing, helping the GBP/USD pair recover to 1.5280 after the official data showed the US economy contracted at slower than expected rate in the first quarter.
GBP/USD sees minor correction post US GDP
The pair fell to a low of 1.5236 immediately after the release of the US GDP report, before recovering to a post GDP high of 1.5280. The second estimate revised Q1 GDP lower to -0.7%, against the expectation of -0.9%. Still, the US dollar suffered minor losses, which may have been due to unwinding of long USD positions ahead of the weekend and month end.
With US GDP out of the way, the investors now await Chicago PMI and final Michigan Confidence index for May.
GBP/USD Technical Levels
The pair now trades at 1.5270, with the immediate support seen at 1.5230, followed by support at 1.52. On the other hand, resistance is seen at 1.53 and 1.5336.
(Market News Provided by FXstreet)