On Friday, the pound fell against the US dollar, but stayed close to the highest in six weeks, after the published report on economic growth in the UK showed that the country's GDP grew in line with the forecast. The rate of the pound is supported by information on the possibility of tightening monetary by the Bank of England.
During the morning session in European markets, GBP/USD was traded at the session low at 1.2985; then the pair slightly increased to 1.2993. For the current session, it fell 0.11%.
GBP/USD is likely to find support at Thursday's low at 1.2938 and resistance at the May 23 peak at 1.3036.
The Office for National Statistics (ONS) on Friday reported that gross domestic product grew by 0.2% in the first quarter, which is in line with forecasts and unchanged from the preliminary estimate. Compared to the same period last year, UK GDP grew by 2.0%.
According to another report, the UK trade deficit in the first quarter increased to £ 16.9 billion compared to £ 12.1 billion in the fourth quarter of last year.
Analysts predicted that the current trade deficit would increase to £ 17.3 billion in the first quarter.
The pound rate also rose sharply after the head of the Bank of England Carney said on Wednesday that the methods of tightening monetary policy may be required when the British economy leaves the EU at the maximum pace (hard Brexit).
At a meeting of the Bank of England Monetary Policy Committee, which took place earlier this month, by voting five to three, the bank decided to keep the interest rate at a record low of 0.25%. Carney voted to keep the interest rate unchanged.
The pound rate also rose to the euro – EUR/GBP fell 0.27% to 0.8773.