GBP/USD Consolidates Before Britain’s GDP Report


GBP/USD consolidated around the 1.6822 resistance area on Monday ahead of Britain’s Gross Domestic Product (GDP) report for the first quarter, an unexpected actual outcome might incite huge volatility in cable. Not to mention, the US GDP and Monetary Policy are also due tomorrow, providing long term direction to the pair.

Technical Analysis

As of this writing, the pair is being traded near 1.6812. A hurdle may be noted near 1.6822 that is the swing high of the last major rally ahead of 1.6857, the intraday high of yesterday. A break above 1.6857 will open doors for fresh multi-year highs, threatening the 1.7000 handle in the medium term.

gbp usd

On the downside, the pair is expected to find a support around 1.6684, the 23.6% fib level, ahead of 1.6670, the long term channel support as demonstrated in the above chart. A break and daily closing below the channel resistance could begin the long-awaited correction phase, exposing 1.6250 in the long term.

UK Gross Domestic Product

Today the National Statistics Department of the UK will release the GDP report. According to the median projection of different economists, the economy grew at 3.2% during the first quarter as compared to 2.7% in the same quarter of the year before. Similarly, the growth increased to 0.9% in first quarter compared with 0.7% in the quarter before, better than expected actual outcome will be seen as very bullish for the pair.

Trade Ideas

If the GDP data comes better than the forecast, then obviously buying the pair above the yesterday’s low could be a good option, the stop should be placed just below the intraday low of Monday while the initial target may be 1.6950.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

SNB Unexpectedly Lowers Interest Rate from 1.50% to 1.25% GBP Awaits Bank of England Verdict: Volatility Ahead? Market Analysis: AUD/USD and NZD/USD Sight Steady Increase European Currencies Adjust to Support Levels: Is Growth Possible? NZD/USD Exchange Rate Falls from Nearly 5-Month High

Latest articles

Forex Analysis

SNB Unexpectedly Lowers Interest Rate from 1.50% to 1.25%

Today, it was announced that the Swiss National Bank (SNB) decided to lower the interest rate to 1.25%. According to ForexFactory, the analyst consensus had expected the rate to remain at 1.50%, making this decision a surprise.



Bitcoin Finds Support: Will It Last?

The well-known (but anonymous) analyst known as PlanB predicted that Bitcoin's price will reach $150,000 by the end of this year and $800,000 by 2025. How realistic is this?

Analyzing the long-term BTC/USD chart on May 16,

Forex Analysis

GBP Awaits Bank of England Verdict: Volatility Ahead?


In the first half of the current trading week, the GBP/USD pair has confidently stayed above the significant range of 1.2700-1.2650, continuously attempting to resume its upward trend. Today, everything could change. Depending on the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.