GBP/USD: UK economic growth confirmed at 0.2% in the first quarter


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.12% against the USD and closed at 1.3025 on Friday.

On the macro front, final estimate of gross domestic product (GDP) showed that the British economic growth sharply slowed to 0.2% on a quarterly basis in 1Q 2017, confirming the flash estimate and following an expansion of 0.7% in the prior quarter. In contrast, the nation’s final total business investment rebounded 0.6% QoQ in 1Q 2017, in line with preliminary estimates and compared to a fall of 0.9% in the previous quarter.

In the Asian session, at GMT0300, the pair is trading at 1.3005, with the GBP trading 0.15% lower against the USD from Friday’s close.

The pair is expected to find support at 1.2957, and a fall through could take it to the next support level of 1.2910. The pair is expected to find its first resistance at 1.3041, and a rise through could take it to the next resistance level of 1.3078.

Moving ahead, market participants will look forward to UK’s Markit manufacturing PMI for June, slated to release in a few hours.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

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