- GBP/USD bounces off 1.1870 and returns to the daily high zone.
- UK: May growth data beat expectations.
- The US reports inflation for June at 12:30 GMT.
GBP/USD is rising on Wednesday and extends the recovery from the two-year low it reached near 1.1800 on Tuesday. The pair hit as high as 1.1936, a two-day high, after UK data and buoyed by a steadier dollar.
The greenback is falling modestly, in advance of important US data. June inflation data will be published at 12:30 GMT and is expected to show a rise from 8.6% to 8.8%, reaching a new cycle high.
in the RIn the United Kingdom, the GDP reading for May was known which showed a positive surprise with growth of 0.5%, with higher-than-expected activity data in both the manufacturing and services sectors. In addition, the figures for March and April were revised upwards.
In weekly terms GBP/USD still on track for third straight weekly decline and the sixth of the last seven weeks. The positive is that for the moment it has managed to move away from the minimum, which can be a positive sign.
The dominant trend remains bearish. In the short term, the 1.1925/30 area is the first resistance ahead then 1.1970 will follow followed by 1.2000. In the opposite direction, at 1.1870 there is a key support which if given way will expose the next level at 1.1830/35, the last protection for the 1.1805 low.
Technical levels
Source: Fx Street
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