This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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.