GBP/USD flirting with session lows, closer to 100-DMA post-US GDP

   •  US real GDP rises 3.0% in Q3, tad lower from 3.1 in Q2.
   •  Plummets to fresh lows as USD continues to climb after US growth figures.

The GBP/USD pair maintained its heavily offered tone through the early NA session and tumbled to fresh three week lows post-US GDP print. 

The US Dollar gained additional traction after the advanced estimate showed US real GDP increased 3.0%, annualized pace during the third quarter. The reading was slight below 3.1% growth recorded in Q2, but surpassed even the most optimistic estimates and reinforced the case for a December Fed rate hike move.

   •  United States Gross Domestic Product Annualized above forecasts (2.5%) in 3Q: Actual (3%)

Adding to this, speculation that the next Fed chair could be more hawkish remained supportive of a renewed uptick in the US Treasury bond yields. Hence, widening US-UK yield differential might continue to exert follow through selling pressure, with a fall back to the key 1.30 psychological mark now looking a distinct possibility.

Technical levels to watch

Bears would be targeting for a break below monthly lows support near the 1.3030-25 region, below which the pair is likely to accelerate the slide towards the 1.30 handle en-route 1.2960-50 support area.

On the upside, any recovery attempts back above the 1.3100 handle might now confront fresh supply near the 1.3120-25 region, which if cleared might trigger a short-covering bounce back towards the 1.3200 handle.