GBPUSD Breaks Below 1.21 and Rebounds After Disappointing GDP Data
GBPUSD gives up over 40 pips, after worse GDP figures, than expected. The UK Gross Domestic Product (YoY) came in at 1.2% below forecasts of 1.4 in 2Q, 2019. The month over month figure came in at 0%, this was below expectations of 0.1% in June. In the hourly chart the pair looks trapped between the 50 and 200 hour moving average, and traders are left indecisive on what their next move will be.
The pair breached the lower support line of the recent trading range at 1.2131 and made fresh weekly low at 1.2886. The GBPUSD failed to fly away from recent lows at 1.2078, as sellers are in control. A break lower is the most possible scenario after today’s data. On the upside, immediate resistance stands at 1.2143, the 50 hour moving average while more offers will emerge at 1.2180. Intraday traders can enter a long position if the pair breaks above 1.2182 targeting a break above 1.22, therefore, a stop order should be activated at 1.2086. Short positions should target the levels below 1.21 and at 1.2050 but have to place stop loss orders at 1.2147 today’s high. All in all, the momentum is bearish and a move lower is the most possible scenario; but as the RSI 14 in the daily chart has reached oversold levels at 28.87, there is a possibility for the pair to make a rebound above 1.22, if it manages to break above 1.2183.