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Forex: GBP/USD drops a bit after UK growth forecasts

The EU Commission forecasts the UK 2013 GDP to grow at +0.9%, and +1.9% in 2014. The release of such figures provoked a drop to 1.5258 on the chart. The GBP/USD continues to edge higher on the day, above its opening price of 1.5260.

No UK data will be published today and the market will be mainly eyeing any comment from officials on these growth forecasts, as well as FOMC Powell and Fed's Tarullo speaches ahead in the US session.

“With 4h chart studies moving higher from oversold territory, seen as supportive element, further recovery requires break above 1.5320, 20 day EMA and regain of minimum 1.5400, to confirm basing attempt”, wrote Windsor Brokers analyst Slobodan Drvenica, allowing fresh weakness towards the next target at psychological 1.5000 level.

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