GBP/USD testing support near 1.3220

Having faced-rejection near the mid-point if 1.32 handle at Tokyo-open, the GBP/USD pair turned lower towards the 1.3200 in the mid-Asian session.

GBP/USD: Focus shifts to US data

Currently, GBP/USD trades almost unchanged around 1.3222, retreating further away from 1.3250 levels. The GBP/USD pair appears to have fought back control and now try hard to resume not-so impressive FOMC statement-led rally seen overnight, although in vain, as the bears keep control amid mixed sentiment prevalent in the Asian markets.

However, downside remains cushioned as the cable continues to cheer better-than expected UK growth number, with the prelim GDP estimate having risen 0.6% q/q in the second quarter of 2016, up from 0.4% booked in the first quarter, beating estimates of a rise of 0.5% in June quarter.

Further, the bearish US durable goods data poured cold water on the expectations of an improved GDP report, and hence, weighed on the greenback cross the board, underpinning the bids for the GBP/USD pair.

With the Fed out of the way, focus shifts towards the US jobless claims and GDP data due today and tomorrow for fresh insights on the US economic outlook.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3249 (daily top), above which 1.3300 (round figure) would be tested. On the flip side, support is seen at 1.3177/69 (10 & 5-DMA) below that at 1.3133 (20-DMA).

Trade the US Gross Domestic Product - July 29 GDP Live Coverage