GBP/USD weaker near 1.3120 ahead of UK GDP

The Sterling is extending its consolidative pattern around the 1.3100 handle vs. the buck, with GBP/USD now hovering over the 1.3115/20 band.

GBP/USD attention to GDP figures

Spot is retreating for the second session in a row so far, keeping the trade within the recent range after finding quite a tough barrier around the 20-day sma at 1.3145.

GBP will remain under pressure in light of the publication of the advanced figures for the Q2 GDP, with consensus expecting the domestic economy to have expanded 0.4% inter-quarter and 2.0% on an annualized basis.

The pair is thus prolonging its sideline theme after recent highs in the 1.3480 area (mid-July), struggling to gather any traction amidst Brexit concerns, lacklustre data and the USD rally.

GBP/USD levels to consider

As of writing the pair is losing 0.12% at 1.3116 and a break below 1.3061 (low Jul.20) would aim for 1.2849 (low Jul.11) and then 1.2797 (20916 low Jul.6). On the other hand, the next up barrier aligns at 1.3321 (23.6% Fibo of 1.5020-1.2796) followed by 1.3481 (high Jul.15) and finally 1.3535 (high Jun.29).