GBP/USD hits lows on poor GDP

FXstreet.com (Edinburgh) -The sterling is now accelerating its correction lower after the UK GDP for the second quarter disappointed investors, dragging the GBP/USD to test sub-1.6040 levels.

GBP/USD hurt by data

According to the last release, the British economic activity during the second quarter expanded 0.7% inter-quarter, banging on estimates and up from the previous 0.3% advance. On a yearly basis, the GDP grew 1.3%, missing consensus and Q1’s print at 1.5%. Further data showed that the Current Account deficit narrowed to 313 billion during the same period vs. £21.8 billion in the previous quarter (revised). The Total Business Investment sharply contracted 2.7% vs. a rise of 0.9% expected.

GBP/USD key levels

As of writing the pair is down 0.18% at 1.6050 and a break below 1.6020 (MA50h) would aim for 1.5980 (low Sep.25) and finally 1.5955 (low Sep.24). On the upside, the initial hurdle lines up at 1.6145 (high Sep.19) and then 1.6164 (high Sep.18).

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