GBP/USD Eyes New Peaks Amid UK GDP Surprise and USD Dip

The GBP/USD pair builds on its upward trajectory, currently hovering around 1.2230, as it capitalizes on the UK's positive GDP data and a softening USD.

Written by: Arslan Butt • Monday, November 13, 2023 • 1 min read

• Last updated: Monday, November 13, 2023

The GBP/USD pair builds on its upward trajectory, currently hovering around 1.2230, as it capitalizes on the UK’s positive GDP data and a softening USD. Friday’s preliminary UK GDP outperformed expectations by holding steady in Q3, avoiding the predicted decline, which could bolster confidence in the Pound.

Despite the GDP’s positive note, the UK’s economic outlook remains shadowed by stagflation risks, with high inflation and unemployment threatening growth. Fed Chair Powell’s recent hawkish remarks underscored persistent inflationary pressures, adding a tinge of caution to the markets.

The US dollar’s position wavered following underwhelming consumer sentiment data, shifting focus to the forthcoming economic reports. Market participants are bracing for a critical week, with the UK’s employment and inflation statistics due, while the US CPI release will command attention, potentially swaying GBP/USD movements.

Technically, GBP/USD is oscillating near the 1.2200 mark, with momentum indicators suggesting a cooling rally as stochastic readings approach overbought territory. This hints at a possible resumption of the bearish trend, with an initial target at 1.2170.

The bearish stance remains predominant, with a fall below 1.2170 likely to precipitate a move towards 1.2037. Conversely, a push above 1.2297 could neutralize bearish pressures and prompt recovery efforts.

Today’s trading is forecasted to fluctuate between 1.2140 support and 1.2280 resistance, with the prevailing trend expected to be bearish.

GBP/USD Live Chart

GBP/USD

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.