23 Dec 2015
GBP/USD finds support from UK current account deficit number
FXStreet (Mumbai) - The GBP/USD is pointing southwards after the UK Office for National Statistics (ONS) revised the Q3 GDP lower, but the losses are being capped by a better-than-expected UK current account deficit.
Rebound from 1.4824
The pair fell to 1.4824 levels immediately after the UK GDP release, but quickly recovered to trade around 1.4840 levels on account of the slower-than-expected rise in the current account deficit. The deficit was expected to have widened to GBP 21.50 billion, but the actual figure printed at GBP 17.46 billion.
The upside remains capped on account of the downward revision of the GDP to 2.1% y/y and 0.4% q/q. Furthermore, the previous quarter’s current account deficit was revised slightly higher to GBP 17.5 billion.
The focus now shifts to the US data releases – durable goods orders, personal spending and income report and new home sales figure.
GBP/USD Technical Levels
At 1.4840, the pair faces immediate resistance at 1.4865 (Dec 17 low)-1.4895 (Dec 2 low). A break higher could see the pair rise to 1.4950 (Dec 18 high). On the other hand, a break below the immediate support at 1.4805 (previous day’s low) would open doors for a drop to 1.4739 (Apr 1 low).
Rebound from 1.4824
The pair fell to 1.4824 levels immediately after the UK GDP release, but quickly recovered to trade around 1.4840 levels on account of the slower-than-expected rise in the current account deficit. The deficit was expected to have widened to GBP 21.50 billion, but the actual figure printed at GBP 17.46 billion.
The upside remains capped on account of the downward revision of the GDP to 2.1% y/y and 0.4% q/q. Furthermore, the previous quarter’s current account deficit was revised slightly higher to GBP 17.5 billion.
The focus now shifts to the US data releases – durable goods orders, personal spending and income report and new home sales figure.
GBP/USD Technical Levels
At 1.4840, the pair faces immediate resistance at 1.4865 (Dec 17 low)-1.4895 (Dec 2 low). A break higher could see the pair rise to 1.4950 (Dec 18 high). On the other hand, a break below the immediate support at 1.4805 (previous day’s low) would open doors for a drop to 1.4739 (Apr 1 low).