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Forex - GBP/USD slips lower despite positive U.K. GDP data

Published 11/27/2015, 04:48 AM
© Reuters.  Pound approaches 7-month lows vs. broadly stronger dollar
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Investing.com - The pound slipped lower against the U.S. dollar on Friday, re-approaching a seven-month trough even after data showed that the U.K. economy grew in line with expectations in the third quarter, as hopes for a U.S. rate hike before the year-end continued to support the greenback.

GBP/USD hit 1.5054 during European morning trade, the pair's lowest since November 25; the pair subsequently consolidated at 1.5061, shedding 0.28%.

Cable was likely to find support at 1.5023, the low of November 6 and resistance at 1.5137, the high of November 25.

The U.K. Office for National Statistics reported that gross domestic product rose 0.5% in the third quarter, in line with expectations and with a previous estimate.

Year-on-year, U.K. GDP expanded 2.3% in the three months to September, as expected and in line with an initial estimate.

Meanwhile, the dollar remained broadly supported after a string of upbeat U.S. data released over the week added to expectations that the Federal Reserve will raise interest rates next month.

Sterling was lower against the euro, with EUR/GBP adding 0.21% to 0.7040.

In the euro zone, preliminary data earlier showed that Spanish consumer prices rose 0.3% this month, beating expectations for a 0.2% uptick and after an increase of 0.6% in October.

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