GBP/USD tumbles to lows near 1.3280 post-UK GDP

• UK GDP expected to expand 0.4% QoQ in Q3.
• Earlier up move stalled near 1.3340.
• Positive sentiment around Brexit talks supports GBP.

The Sterling has give away initial gains vs. the greenback on Thursday, forcing GBP/USD to recede towards session lows in the 1.3280 area.

GBP/USD offered on GDP figures

Cable met a bout of selling pressure after preliminary figures of UK GDP showed the UK economy is expected to expand at an annualized 1.5% during the July-September period and 0.4% inter-quarter, both prints coming in in line with prior surveys.

Further UK data saw advanced business investment rising 1.3% on a yearly basis in Q3 and 0.2% QoQ, and index of services rising 0.4%. Later in the session, CBI’s distributive trades survey is due.

In the meantime, Cable is now reverting a 5-session positive streak following UK data and after being rejected from the critical 1.3340 area earlier in the session. However, further gains in GBP appears likely in the near term following the activity in GBP futures markets and some fresh optimism stemming from the Brexit negotiation.

GBP/USD levels to consider

As of writing the pair is losing 0.11% at 1.3306 and a breach of 1.3285 (low Nov.23) would target 1.3254 (55-day sma) en route to 1.3186 (21-day sma). On the other hand, the next hurdle is located at 1.3337 (high Nov.23) seconded by 1.3343 (50% Fibo of 1.3658-1.3017) and finally 1.3447 (high Sep.6 2016).