GBP/USD consolidates below 1.30 amid lack of catalysts

After rising above the 1.30 handle during the early trading hours of the European session, the GBP/USD pair failed to extend its bullish momentum after the dismal GDP growth data from the U.K. and fell towards mid-1.29s. Following that drop, the pair has been moving sideways in a 40-pip range and has been unable to find a short-term direction. As of writing, the pair was trading at 1.2955, down 0.12% on the day.

Today's data from the U.K. showed that the GDP growth came in at 0.2% in Q1 2017, missing the expectations of 0.3%. On a yearly basis, the growth rate eased to 2.0% from 2.1%, as consumer spending and retail sales contracted. 

• UK Q1 2017 GDP revision misses expectations

Later in the day, the data from the U.S. came in mixed, failing to provide a fresh impetus for the price action. Although the weekly jobless claim numbers increase from last week, it beat the expectations. However, the trade deficit expanded, disappointing the investors, who expected a shrinkage. Also, Lael Brainard from the Fed's Board of Governors crossed the wires but didn't comment on the monetary policy nor the economic situation in the U.S. 

• Fed's Brainard: Upward revisions to global growth will continue
• US: Weekly initial claims was 234,000, an increase of 1,000 from the previous week

There are no more data left in the session and the pair is likely to stay in its daily range. Tomorrow's economic calendar won't be offering any data from the U.K. However, later in the session the GDP report and the Durable Goods Orders could bring some long-awaited volatility.

Technical outlook

With a decisive move above 1.30 (psychological level), the pair could target 1.3050 (May 18 high) and 1.3120 (Sept. 22 high). To the downside, supports align at 1.2940 (May 19 low), 1.2845 (May 12 low) and 1.2800 (psychological level).