Sterling hit by GDP report
The pound was pushed lower by the second estimate GDP which came in at 0.3% — the market was anticipating a reading of 0.4%. When you take into account that the UK is going through deflation, it does not bode well for the pound, and the pressure will remain on GBP/USD.
The US will announce the jobless claims and the pending home sales figures at 1.30pm and 3pm (London time) respectively. Lately the jobs data from the US has been strong, but that has been ignored by dealers and the market wants to see that people are going out and spending money. This is why the pending home sales report will carry more weight with traders.
The pound has been in a downward trend for the past two weeks with $1.53 acting as support. If that mark is punctured then traders will look to $1.50 for support. If $1.53 is held, any upward move will encounter resistance at $1.54, and then $1.56 will be brought into play.