Pound drops to 1.4600 after GDP data

The Pound seems to have been hammered by UK GDP data, and the Pair has dropped about 80 pips from 1.4675 to levels right at Apr 23 low 1.4595. UK Gross Domestic Product relative to the first quarter has been released to have dropped 1.9% in the first quarter and 4.1% year on year, according to preliminary estimations by National Statistics.

Dollar might fall to 93.50, says Mizuho

FXstreet.com (Barcelona) – Dollar weakness has driven the pair to a new two-weeks low at 96.65 from 98.50 level on yesterday’s U.S. session, breaking below the upward trending support line from 87.00 low on Jan 21; the Dollar trades now 0.97% below its opening level on an attempt to gain positions above 97.00.

At this point seems that 101.45 high reached on Apr 06 will remain unbroken for a time as Nicole Elliott, senior technical analyst at Mizuho Corporate Bank has affirmed: “Dropping by more than expected, breaking below the 50% retracement level and the 9 and 26-day moving averages. This has forced us to adjust our view and now see April’s high at 101.45 as an interim top so that prices are likely to hold below here for another couple of months or so.”

According to Elliott, Dollar weakness might continue to reach levels at 93.50: “The next step should be a bout of generalised US dollar weakness so that dollar/Yen drops towards 93.50.”