The Great British rose against the dollar on Monday after the European Union’s top negotiator Michel Barnier said an agreement for Britain to leave the economic bloc might be reached in the coming weeks. Following the news the GBP/USD pair jumped pass 1.3000 level mid-European morning, reaching a 5-week high of 1.3051.
On the local data front yesterday Gross Domestic Product (GDP) accelerated in the month of July, courtesy of a sharp rise in motor trading, lifting output to its quickest pace in nearly a year. GDP expanded by 0.3% in the month of July, above the MNI median forecast of a 0.2% rise, after a 0.1% rise in June. That took growth in the three months to July to 0.6%. Industrial Production also rose by less-than-expected In July, up by just 0.1% MoM, while manufacturing output contracted 0.2%. Looking ahead today we will see the release of UK Jobless Rate which is expected to remain at 4.00%.
From a technical perspective, the USD/GBP pair is currently trading at 1.3024. We continue to expect support to hold on moves approaching 1.2985 while now any upward push will likely meet resistance around 1.3050.