The pair GBP/USD has exhausted its potential for growth.
Yesterday we could observe that the area above 1.47 gives the sufficient resistance for the pair GBP/USD. In addition, the British data were weak yesterday.
The GDP was 2.0% vs. the forecast of 2.1%. The mortgage approvals decreased to 40.1K vs. 44.8K. It’s the minimum rate since March 2015.
In April, the durable goods orders jumped by 3.4% while waiting for only 0.5%. The core durable goods orders increased by 0.4%. The pending home sales increased by 5.1% while waiting for 0.6%. The number of jobless claims amounted to 268K against the previous 278K.
Today the US publishes the GDP for the 1st quarter of the 2nd assessment. The forecast is 0.9% vs. 0.5% in the 1st assessment. The real consumer spending is expected to grow by 2.1% against 1.9% in the previous period. Michigan consumer expectations may show a slight decline. Also, Fed Chairman Janet Yellen will have speech today. We are waiting for the return of the pair GBP/USD at the 1.4545 area.
How to trade
The pair may continue to rise if it rises above 1.4727. However, this is unlikely. The downward movement is possible after the breakdown of 1.4647. We would buy put options if the pair falls below 1.4647.
Target price: 1.4647
Close price: 1.4610
Expiry time: 20:00 GMT