GBP/USD: Slips below 1.3300 from 7-month high, US GDP and Brexit moves are in the spotlight
- GBP/USD is near 1.3300 while heading towards London open on Thursday.
- The pair failed to hold seven-month high marked on Wednesday as early-day strength of the USD triggered its pullback.
- In addition to Brexit developments, an initial estimate of the US Q4 2018 GDP could direct near-term moves of the pair.
GBP/USD trades a shade lower than 1.3300 ahead of European session on Thursday. The pair surged to the seven months high near 1.3350 during late-Wednesday as UK lawmakers favored the PM Theresa May’s previous motion to place delay of the Article 50 for voting in the parliament. However, the Cable couldn’t hold those gains for long as early-day moves were supportive to the USD. While on-going Brexit saga can continue to direct the pair’s near-term direction, the first estimate of Q4 2018 gross domestic product (GDP) for the US economy could also play an important role during rest of the day.
The GBP/USD pair surged to the seven-month high after the British members of parliament (MPs) overwhelmingly backed the proposal to put the Article 50 delay on the vote, also known as Cooper's Brexit amendment F.
Though, the Cable failed to hold the 1.3350 figure for long and slipped under 1.3300 as early-day data from Japan, New Zealand, AU and China didn’t go well and pushed investors toward the greenback.
Looking forward, on-going drama in the UK parliament concerning Brexit could offer immediate impulse to the Cable. With the major events likely to take place from March 12, chances are high that GBP may continue portraying optimism based on Theresa May’s recent acts of putting forth the initial proposal which if turned down can escalate voting for ‘no-deal’ Brexit and delayed Article 50.
Also, Advanced estimates of the Q4 2018 US GDP is another important catalyst to watch. The growth figure is expected to soften to 2.3% from 3.4% registered during the previous quarter.
GBP/USD Technical Analysis
In spite of declining below 1.3300, the pair is still above 1.3280 and 1.3230 support levels, which in turn could highlight 1.3200 rest-points.
On the upside, 1.3365 and 1.3400 may please buyers if they cross 1.3300 again.