FXStreet (Mumbai) – The recovery in the GBP/USD pair appears to have stalled around 1.53850 after a softer NIESR August UK GDP estimate made an early entry onto the wires.
200-DMA support intact
The weaker UK data released earlier today weakened the GBP, although the bears lacked strength to push the spot below its 200-DMA located at 1.5351. Consequently, the upbeat tone in the global equities helped the pair take back a major part of its losses to trade around 1.5380.
However, the recovery appears to have stalled after the NIESR August UK GDP estimate printed at 0.5% compared to the downwardly revised previous reading of 0.6%. The weak estimate appears to have capped recovery, although positive sentiment on the Wall Street has ensured the pair does not resume the fall.
GBP/USD Technical Levels
The immediate support is located at 1.5351 (200-DMA), under which losses could be extended to 1.53 levels. On the other side, resistance is seen at 1.5413 (previous day’s high) and 1.5490 (50% of last two week’s fall).
(Market News Provided by FXstreet)