The GBP/USD price formed a double-top on the hourly chart ahead of the important UK GDP data scheduled for 07:00 GMT. The pair is trading at 1.3793, which is 0.50% below the lowest level yesterday.
GBP/USD news: The GBPUSD price dropped yesterday after the US released relatively weak initial jobless claims numbers. The release came a day after the country published weak inflation numbers.
Today, the focus will be on the important UK GDP, industrial and manufacturing, construction and trade numbers. Analysts are a bit pessimistic. They see the country’s GDP contracting by 8.1% in the fourth quarter. They also see the UK industrial production falling by 3.8% in January because of the lockdowns. Further, they see the UK trade deficit widening.
In general, better numbers from the UK will be bullish for the GBP/USD because they will incentivise the Bank of England (BOE) to leave interest rates intact. However, disappointing figures could push the BOE to push rates to the negative zone.
GBP/USD technical outlook
The GBP/USD price formed a double-top pattern and several false break-outs on the hourly chart. Since then, the price has moved below the 15-day and 25-day weighted moving averages. The price has also moved below the ascending trendline shown in pink while the two MACD lines have moved below the neutral line.
Therefore, the pair may continue falling today, with the next key target to watch being at 1.3750. However, a climb back above 1.3820 will invalidate this trend.
GBPUSD technical chart