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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