GBP/USD hangs near weekly lows, 1.2400 mark remains in sight

• The US economy expands by 2.1% annualized pace in Q2 vs. 1.8% expected.
• The USD remained well support near two-month tops on upbeat GDP report.
• Persistent fears of a no-deal Brexit might cap any attempted recovery move.

The GBP/USD pair refreshed weekly lows, around the 1.2410 region in reaction to upbeat US GDP report, albeit quickly recovered few pips thereafter.

The pair remained under some selling pressure for the second consecutive session on Friday and lost some additional ground after the advance US GDP report showed that the US economic growth stood at 2.1% annualized pace during the second quarter of 2019.

The headline print marked a significant deceleration from the previous quarter's robust growth of 3.1% but was much better than 1.8% expected and further cemented the case for only an insurance rate cut of 25 bps by the Fed at its upcoming meeting on July 30-31.

The same was reinforced by an intraday pickup in the US Treasury bond yields, which provided a modest lift to the US Dollar and exerted some downward pressure on the major, albeit the downtick managed to find some support ahead of the 1.2400 round figure mark.

However, growing fears of a no-deal Brexit might continue to hold the GBP bulls on the defensive and keep a lid on any attempted recovery. In fact, any meaningful up-move might still be seen as a selling opportunity and a break below the 1.2400 handle remains a distinct possibility.

Technical levels to watch

Yohay Elam, FXStreet's own Analyst notes – “Initial support below the trendline awaits at 1.2420 which was a swing low earlier this week. The two-year low of 1.2380 is a critical line. Below, we find 1.2330 and 1.2250.”

“Resistance awaits at 1.2440 which was a double-top, last seen in mid-July. Further up, 1.2480 was a swing low in mid-July, and 1.2520 capped GBP/USD in recent days,” he added further.