GBP/USD stays below 1.2800 post-GDP

GBP/USD has quickly faded the earlier spike above 1.2800 the figure, or session tops, returning to the 1.2790/85 band in the wake of the release of UK data.

GBP/USD offered on data

Cable met further downside pressure after preliminary GDP figures showed the UK economy is seen expanding 0.3% QoQ during Q3 and 1.7% on an annualized basis, matching initial forecasts.

Further data saw UK’s index of services rising 0.5%, while business investment came in flat inter-quarter in Q2 and mortgage approvals rose to 41.6K.

In the meantime, spot remains under pressure and trading in the area of 2-month lows around 1.2790. Market participants stay wary of Brexit headlines, while the rally in EUR/GBP continues to weigh on Cable for the time being.

In the US data space, the usual weekly report on the labour market is due along with July’s existing home sales and the start of the Jackson Hole Symposium.

GBP/USD levels to consider

As of writing the pair is losing 0.08% at 1.2789 and a break below 1.2747 (76.4% Fibo of 1.2587-1.3266) would open the door to 1.2652 (200-day sma) and finally 1.2587 (low Jun.21). On the upside, the next hurdle aligns at 1.2879 (10-day sma) followed by 1.2920 (high Aug.18) and then 1.2923 (55-day sma).