GBP/USD correction after US data back in the direction of 1.29

FXStreet – After the rise to new 7-month high of 1,2955, the GBP/USD is in a consolidation phase and until the publication of the US data is quoted in a narrow Range. Despite the mixed data, the Greenback gained momentum against its rivals and the GBP/USD fell in the direction of 1.29. Currently, the trade with 0.2% held one-day gain in 1,2905.

The published US data show that the GDP in the 1. Quarter of 2017, 0.7 % increase while the forecast was 1.2%. Despite the disappointing GDP, the PCE, the results of the US Dollar Index quickly in the direction of 99 rise. Currently the DXY daily loss amounts to -0,12 % 98,90.

Next, we expect the Chicago PMI and the Reuters/Michigan consumer sentiment index. The movements in the DXY will remain the most important driver for the development of the price of the pair.

Technical Prospects

Resistances lie at 1,2955/60 (daily high / High 4. October), of 1.30 (psychological level) and 1,3060 (High 28. September). On the other hand, supports are at 1.2900 (psychological level), 1,2840 (Deep 27. April) and of 1.2760 (Deep 21. April).

** FXStreet News Editorial, FXStreet**

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