The British pound fell on the day as economic data showed a second month of GDP contracting. Missing estimates of a 0.1% decline, the gross domestic product fell 0.4% on the month in April. Manufacturing data was also weaker, falling 3.9% on the month. This was more than the estimates of a 1.1% decline. Focus will shift to the monthly jobs report due later today. The average earnings index is forecast to slow to a pace of 2.9% from 3.2% previously.
GBPUSD to Continue Trading Sideways
The currency pair briefly ticked higher as it broke past the upper range of 1.2716. However, price slipped back into the range on Monday. The Stochastic Oscillator is seen to be bullish which could potentially signal the upside bias. GBPUSD will need to close strongly above 1.2716 in order for any further upside. To the downside, the lower end of the range at 1.2606 remains in place.
