30 Oct 2014
GBP/USD falls to 1.5950 and bounces up daily highs
FXStreet (San Francisco) - The initial reaction from the good report of US Q3 GDP was a positive dollar that dragged the GBP/USD to a minimum of two weeks at 1.5950. However, the pair bounced off this level and is now trading near daily highs at 1.6010.
US GDP rose 3.5% in Q3; above 3.0% expected. the last 4 quarters were + 4.5%, + 3.5%, -2.1% and + 4.6%. But the fine print shows a not so good result as consumption dropped to 1.8% from 2.5%, while core PCE dropped to 1.4% from 2.0%. The statement acknowledges too much public spending.
Currently, the GBP/USD is trading at 1.6002, down 0.06% on the day, having posted a daily maximum and minimum 1.6020 1.5951.
Levels of GBP/USD
If the pair extends rebound above 1.6000 will find the next resistance at 1.6010 and 1.6020. On the downside, supports are at 1.5950, 1.5900 and 1.5875.
US GDP rose 3.5% in Q3; above 3.0% expected. the last 4 quarters were + 4.5%, + 3.5%, -2.1% and + 4.6%. But the fine print shows a not so good result as consumption dropped to 1.8% from 2.5%, while core PCE dropped to 1.4% from 2.0%. The statement acknowledges too much public spending.
Currently, the GBP/USD is trading at 1.6002, down 0.06% on the day, having posted a daily maximum and minimum 1.6020 1.5951.
Levels of GBP/USD
If the pair extends rebound above 1.6000 will find the next resistance at 1.6010 and 1.6020. On the downside, supports are at 1.5950, 1.5900 and 1.5875.