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GBP/USD trims gains near 1.5425, UK GDP in focus

FXStreet (Mumbai) - GBP/USD recedes the early spike towards 1.5450 levels, although remains bid, as the greenback halted its correction lower and appears to resume its recent upward trajectory. While focus now shifts back to the UK growth figures - second estimate due later in the session ahead.

GBP/USD supported at 1.5404

The GBP/USD pair trades 0.14% higher at 1.5425, retreating from 1.5443 session highs. The cable keeps gains as markets await an upbeat print of the second estimate of UK’s GDP.

The second official GDP estimate is projected to show the UK economy grew at a rate of 0.7% between the first and second quarters.

Moreover, rallying global equities coupled with commodity rebound, with oil prices still climbing higher, continues to boost the risk sentiment which keeps the GBP/USD pair underpinned.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5443 (Today’s High) above which gains could be extended to 1.5509 (Aug 27 High) levels. On the flip side, support is seen at 1.5404 (Today’s Low) below which it could extend losses to 1.5368 (Aug 27 Low) levels.

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Stéphanie Aymes, Head of Technical Analysis at Societe Generale, sees a retest of 118.20 in USD/JPY as a likely outcome.
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