UK Q1 GDP next: impact on GBP/USD, EUR/GBP, GBP/JPY

FXstreet.com (Barcelona) - Next on tap in the UK docket will be the final figures of the UK GDP for the first quarter, with market consensus expecting the British economy to have expanded 0.3% inter-quarter and 0.6% over the last twelve months, confirming the upbeat tone from the preliminary figures released in late April. However, the recent lukewarm employment data and poor retail sales prompt investors to stay wary of any surprises.

The sterling is now gathering some pace around 1.5045/50, recovering ground after the recent sharp sell off that dragged the pair to the boundaries of 1.5000. A breakout of 1.5175 (high May 22) would expose the 55-day moving average at 1.5254 while a breach of 1.5015 (Fibo retracement) will accelerate the downside to 1.4965 (low Mar.7).

“Steady gains above 1.5130 may see the pair advance up to 1.5170/80 area where sellers should halt any attempt to advance further”, suggested Valeria Bednarik, Currency Strategist at FXstreet.com.