The Pound pushes lower amid pressure from the soaring U.S Dollar. Yesterday, the greenback's monthly rally was reignited following the release of the Final U.S GDP figures for the second quarter of this year. The annual quarter on quarter figure of 4.2% represented the quickest economic growth rate seen in the last four years which raised optimism about a fourth rate hike this year. For today, eyes will shift towards economic data from the U.K with the U.K GDP figure set to be released during the London trading session. A better than expected reading will aid the Pound and fight off pressure from the greenback.
The Pound falls back towards the 1.30387 support level as the greenback pressures the British currency lower. This is the second time during the week that the pair tests this level. A break below this level will pave the way for a drop towards 1.29500. It will be interesting to see how the pair reacts in this level given that we also have support from the key 200-period moving average. On a short term basis, momentum remains bearish given that the 13-period moving average broke below the 50-period moving average.
Support: 1.30387 1.29500
Resistance: 1.31513 1.32017