- The GBP/USD pair retreated back few pips after soft UK GDP data weighted on British pound during early European afternoon.
- Despite soft macroeconomic readings from UK, short term picture for pair is still bullish as British pound is stronger across the board against US dollar.
- The Office for National Statistics said the economy grew 0.4 percent in the January-March period. Business investment fell by 0.4 percent year-on-year in the first quarter after rising 3.0 percent in the fourth quarter of last year.
- Currently the cable is trading around 1.4701 levels, it is set to advance further towards 1.4750 and later towards 1.4800 levels in the short term.
- To the upside, the strong resistance can be seen at 1.4770, a break above this level would expose to cable to next resistance level at 1.4824.
- To the downside immediate support can be seen at 1.4675, a break below at this level will open the door towards 1.4618.
Resistance Levels
R1: 1.4745(38.2% Retracement Level)
R2: 1.4770 (May 3rd high)
R3: 1.4824 (23.6% Retracement Level)
Support Levels
S1: 1.4675 (50% Retracement Level)
S2: 1.4618 (61.8% Retracement Level)
S3: 1.4559 (May 19th lows)
The material has been provided by InstaForex Company – www.instaforex.com