GBP/USD (current price: 1.2269)
The Prelim British GDP Growth Report came in at 0.7%, better than the expected 0.5%, and that helped the Pound in continuing its rebound against the Dollar after an extended period of sideways price action, and a spike lower earlier on this week. The CBI Realized Sales Index was also a big positive surprise with a reading of 21 as analysts expected a number of -2. The encouraging reports might push Cable higher, although the long-term trend remains bearish, and Brexit related uncertainty still weighs on the Pound.
Our assessment: The cross is still holding up above the flash crash lows near 1.20 with strong resistance near 1.25, and above that at 1.2750.
