STERLING DOWNSIDE RISK ON WEAKER Q2 GDP DATA
The GBPUSD pair has slipped back towards the weekly pivot point, ahead of United Kingdom second quarter GDP data, after previously rising towards the 1.3087 level during Tuesday's U.S trading session.
Better than expected U.S consumer confidence data and positive developments in U.S politics helped boost the U.S dollar index, as the Republican party passed a bill in congress to start to debate U.S healthcare.
The GBPUSD pair is currently bearish in the short term, whilst trading beneath the 1.3041 level, and risks becoming bearish in the medium term as the price starts to slip beneath the weekly pivot point, located at 1.3018.
Key intraday resistance for sterling ahead of UK second quarter GDP is found at the 1.3047 and 1.3087 levels, with breakout resistance located at the 1.3122 level.
Should we see weaker than expected second quarter UK GDP, the downside for sterling starts to open up once price travels below the 1.2972 level.
Key GBPUSD technical support below the crucial 1.2972 level comes from the former weekly price low, located at 1.2933. Below this level, the calculated monthly pivot point comes into focus, at 1.2881.