On Tuesday, the pair GBP/USD continued growth, despite poor data on preliminary GDP in the UK. According to the British National Bureau of statistics, GDP rose by 0.3% on quarterly basis, indicating slowdown of economic growth. The rate was the lowest since 2013. Thus, on annual basis GDP fell from 3% to 2.4%.
The rise in the Pound against the USD was triggered by negative consumer confidence index in the U.S. The index amounted to 95.2 points, which was below the forecast. Note also that poor data on the main sectors of the American economy, which were released earlier, give reason to believe that at today’s meeting of the US Fed interest rate will remain unchanged.
Support and resistance
The nearest resistance level is 1.5392 – the highs of 3 March.
Support levels: 1.5261 – This Mondays’ highs and 1.5189 – the highs of last week.
In the current situation it is recommended to open short positions with the target of 1.5261 and protective orders at 1.5392.