Sterling powers ahead on GDP release

The moves in GBP/USD this morning have seen the pair climb to its highest level year-to-date. 

Currency pair GBP/USD is now a mere 20 points from the next main barrier of 1.63, as appetite for the pound on the back of the unrevised UK GDP numbers is growing. UK growth is now the fasted in the developed world, showing a print of 0.8% in the third quarter and 1.5% year-on-year. Disappointingly, exports in Q3 fell by 2.4% – the most since the second quarter of 2011.

Durable goods orders from the US, along with unemployment claims, will be watched closely now. The former is expected to show an increase of 0.5% on the month, against the previous month’s decline of 0.2%. Unemployment claims have taken on much greater importance lately, and this data release ahead of next week’s non-farm payrolls number will be no different. A print of 331,000 is expected this time.

The 1.6300/10 level is a substantial barrier to additional upside for this pair – any moves through it could take out short covering stops. 

Spot FX GBP/USD chart

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