GBPUSD gives up 0.20% at 1.3012 as the pair retreat from ten-day highs after failing to break above the 100-day moving average twice in February. Last week, British pound boosted by the UK GDP for December came in at +0.3% topping the market consensus of +0.2%. The UK Construction output registered in at +0.4% beating the estimates of -0.4%.
The improved economic data might delay the BOE decision to cut interest rates, and shows a pick up after Johnson win in December general election.
GBPUSD last week tested the support at 1.2890 that provided from the 50-day moving average the rebound stalled at the 10-day moving average. Now the pair has formed a double top around 1.3070 in February and only a break above might initiate another leg higher.
On the downside, first support for the pair stands at 1.3009 the daily low. More bids would emerge at 1.2943 the low from February 13th. The 50-day moving average at 1.2917 would be the next critical support. A break below would attract more sellers targeting the 1.2871 low from February.
On the other side, the first hurdle stands at 1.3053 the daily top. If the GBPUSD break above the daily top more offers would be met at 1.3066 – 1.3070 the 100-day moving average and the February double top. A credible break above that level would target the next hurdle at 1.3183 the high from February 3nd.