GBP/USD revisits daily lows after US data

By FXStreet The bid tone around USD strengthened after Q4 GDP release, courtesy of which the GBP/USD pair had a re-look at the daily low of 1.3941 set a couple of hours ago.

Awaits US personal spending report

The headline US GDP figure was strong; however, much of the upward revision of the GDP was mainly due to a change in inventory valuation method. Furthermore, consumer spending, which is a backbone of US economy, was revised lower.

Consequently, Cable has managed to avoid falling below the daily lows set earlier today. Currently, the pair trades around 1.3965. Traders now await another data release, which is expected to show spending picked up pace in January.

GBP/USD Technical Levels

The immediate support is seen at 1.39, under which the spot could extend losses to 1.3878 (weekly low). On the other hand, a break above 1.4004 (5-DMA) would shift risk in favor of a rally to 1.4057 (previous cyclical low).
For more information, read our latest forex news. …read more

Source:: FX Street