GBP/USD Breaks into New Lows after Strong US GDP Data

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GBP/USD Breaks into New Lows after Strong US GDP Data

The GBP/USD has been consolidating since mid-November. Ahead of today’s US GDP data, it was testing 1.5542, which was support twice in December. Let’s take a look at the data and the GBP/USD reaction.

GDP in the US grew at an annual pace of 5.0% in Q3, better than the previous estimate of 3.9%, and the Q2 print of 4.6%. This gives the market more reason to believe the FOMC will raise rates even before mid-2015. The GBP/USD fell to new lows on the year. Now, the 1.56 level could become resistance, and there is further room to fall. The area just under 1.53 contain common lows in 2011 and 2012 and might provide at least some short-term support, but a more important support will be the 1.50 level.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.