GBP/USD: Will UK GDP Yield a Move Past 1.3800?

Summary:

GBP/USD is facing resistance at 1.3800 ahead of the UK GDP data. It will also be reacting to BoE Governor's speech and Fed monetary policy report.

GBP/USD is wavering around 1.3800 ahead of the UK GDP data. analysts and investors alike are keen on whether the released figures will beat the prior month’s growth of 2.3% MoM and contraction of 6.1% YoY.

The UK is also set to release its manufacturing production and trade balance data in today’s session. The expected speech from BoE’s Governor will also impact the currency pair.

At the same time, GBP/USD will be reacting to the Fed monetary policy report. The report comes days after the Fed minutes for its June meeting. Despite the hawkish tone in the central bank’s last meeting, the minutes exuded a rather dovish tone.

GBPUSD technical analysis

GBP/USD continues to find resistance at 1.3800 ahead of the UK GDP data. Notably, it has been seesawing around that level since Tuesday after it dropped from a week-long high of 1.3900. on a two-hour chart, it is trading below the 25 and 50-day EMAs.

At the moment, the technical outlook for GBP/USD is rather neutral. The outcome of the highly anticipated UK GDP is likely to influence the price movements.

On the one hand, better-than-expected figures are likely to push the prices past 1.3800 towards the next targets at 1.3865 and 1.3900. On the flip side, a bearish outcome may lower the support level to 1.3730 or the psychological level of 1.3700.