The UK’s preliminary GDP for the second quarter came out positively at 0.2%, surpassing the expected 0% figure. GBPUSD responded favorably to this data, surging from the 1.2675 support level. Furthermore, industrial production exceeded expectations with a significant 1.8% increase in June. The upcoming week is anticipated to be quite eventful for the GBP, as employment and inflation data are scheduled for release on Tuesday and Wednesday.
GBPUSD has witnessed a substantial rally since March, but its momentum began to wane after mid-July. Since the start of August, GBPUSD has exhibited sideways movement from the lower boundary of the trend channel. The key levels within this range are 1.2675 and 1.28. Presently, the upper boundary of the trend channel appears poised to intersect with the 1.28 resistance level. As long as this resistance remains intact, upward movements may present selling opportunities for trend-following traders. Conversely, a downward breach of 1.2675 support could guide the price towards the 1.2620 and 1.2575 support levels.
However, should positive surprises persist in the upcoming week’s data releases, the prevailing downtrend could be threatened. An upward breakout might intensify buying pressure, potentially targeting 1.2880 and 1.2945 as viable targets in the event of a breakout.
