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Pound rises ahead of UK GDP result

The pound has gained ground against the US dollar, as traders await the UK gross domestic product (GDP) report tomorrow.

GBP/USD is trading at $1.6839, up 0.2% on the day, as traders get their positions in place ahead of a busy week of economic data.

Tomorrow the UK will reveal the growth figures for the first-quarter of 2014, and the consensus is for an increase of 0.9%. Chris Beauchamp noted how the pound had managed to hold above the $1.68 mark for a few trading sessions, which has been an important level lately.

As highlighted by Brenda Kelly, UK unemployment has now dropped below 7%, the level that the Bank of England initially stated as their short term target, and this boosted the cable.

If the GDP figures beat estimates, it is possible we could break the psychological level of $1.69. Although, if it fails to do this, it could slide towards the 50-day moving average of $1.6677.

Spot FX GBP/USD chart

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