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UK GDP Data Preview – Here are the GBP/USD Levels to Watch

GBPUSD
GBPUSD

The GBP/USD is wavering today after the ‘boring’ meeting between Boris Johnson and Ursula von der Leyen in Brussels. The meeting ended without a deal as the two pressed their teams to reach an agreement. This shifts the next solid deadline to Sunday.

On the economic calendar, the key events today will be UK GDP and production data that will come out at 10:00 GMT+3. Economists expect the data to show that industrial and manufacturing production dropped by 6.5% and 8.4% in November as the number of new Covid cases continued to rise. The ONS will also release the October trade numbers.

Later on, the GBP/USD will react to the US inflation numbers that will come out at 16:30 GMT+3. These numbers will possibly show that the America’s inflation remained low in November.

GBP/USD technical outlook

The GBP/USD has been relatively volatile, as shown in the 4H chart below. It is trading at 1.3362, which is higher than yesterday’s low of 1.3321 and lower than the high at 1.3415. The price is also slightly above the ascending trendline that is shown in green and is slightly below the 25-day exponential moving average.

Therefore, for today, I suspect that the pair will remain at the current range, with the key support and resistance levels being at 1.3321 and 1.3414.

GBP/USD technical chart

GBP/USD