- The pound among the worst performers among the G10 group on Friday.
- The dollar improves the tone at the end of the week.
- GBP/USD erases most of weekly gains.
GBP/USD accelerated the downside and fell to 1.2117, posting a new two-day low. Hours ago the pair was trading above 1.2200. The pound weakened on all fronts, which added to an improvement in the dollar, put further downward pressure on the pair.
The British currency reached the highest level after the publication of the growth data of the United Kingdom Although it showed a contraction in the second quarter, it was better than expected. In the initial impact the pound rose modestly.
After the growth figures, the pound was losing momentum. The pessimistic outlook on the economy exposed by the Bank of England begins to materialize. EUR/GBP broke above 0.8465, hitting two-week highs.
The dollar for its part is shown more strongly on Friday. In the last hours it erased daily losses against the currencies linked to commodities and marked maximums against the yen, the franc and the euro.
In the US on Friday the import price index will be published and the preliminary data for August of the end of the consumer confidence index of the University of Michigan, which is expected to rise from 51.5 to 52.5.
If further falls GBP/USD next support looms at 1.2100 and then a stronger area of ​​1.2060/65. To the upside, now 1.2170 is the first major resistance, followed by 1.2250. A confirmation above 1.2300 is necessary to enable more raises.
Technical levels
Source: Fx Street
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