GBP/USD takes a sharp U-turn, slumps to 1.2950 post-GDP

The pound met aggressive selling interest over the last hours, hammering GBP/USD to fresh daily troughs near the mid-point of 1.2950.

GBP/USD fails to resist above 1.3000

The spot rallied hard and hit a high of 1.3014 just ahead of the UK Q1 GDP revision. However, the rally was short-lived as cable staged a solid reversal and eroded almost 70-pips following the release of downbeat second estimate of the UK Q1 GDP.

Moreover, resurgent US dollar demand across the board amid risk-off sentiment returning to markets, also collaborated to the downslide in the major. Risk-aversion gripped Europe after oil prices tanked sharply amid OPEC headlines.

Furthermore, the pound also got hit amid fresh reports of an incident occurred at Trafford College, Manchester, with Army bomb disposal team attending.

All eyes now remain on the OPEC decision due later ahead of the US open, which will drive the market sentiment ahead of the US datasets and Fedspeaks on the radar in the American session.

GBP/USD Levels to consider            

Jim Langlands at FX Charts noted: “Back above 1.3000 would find strong resistance in the 1.3035/45 area, capped by last Thursday’s, 8-month high of 1.3047, but above which could run towards strong offers at 1.3075, and then further out, towards the long descending term trend resistance at around 1.3120. A break of this looks important and could lead to a quick run towards 1.3270 although that remains to be seen. A neutral stance is required today although I mildly prefer to trade from the short side, looking to sell rallies towards 1.3000, with a SL placed above 1.3050.”