The corrective pullback in GBP/USD appears to have run its course. If the UK GDP confirms the British economy can avoid recession, the Pound could remain resilient, economists at OCBC Bank report.

Eyes on data dump tomorrow

“UK data dump on Friday is in focus especially after the UK think tank, National Institute of Economic and Social Research (NIESR) predicted that UK is likely to avoid a recession this year. A stronger set of UK data print could validate the think tank's prediction and further unwinding of GBP shorts may well keep GBP supported.” 

“Support here at 1.2040/50 (50% fibo) before 1.1950 (200 DMA) and 1.1820 (100 DMA).” “Resistance at 1.2190 (50 DMA), 1.2230 (21 DMA) and 1.2450 levels (double top).”