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ftse 100

GBPUSD Stronger on Better 2Q UK GDP Figures

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Nikolas Papas Forex Analyst
    Summary:
  • GBPUSD trades 0.36% higher at 1.2328 after United Kingdom GDP showed that the economy contracted by 0.2% (quarter over quarter) in Q2 of 2019

GBPUSD trades 0.36% higher at 1.2328 after United Kingdom GDP showed that the economy contracted by 0.2% (quarter over quarter) in Q2 of 2019, matching the market forecasts,  the yearly GDP reading came in at 1.3%, topping forecasts of 1.2% for the second quarter. United Kingdom Total Business Investment (year over year) came in at -1.4%, topping expectations of -1.6% in second quarter.

GBPUSD adds over 30 pips on the news as the technical outlook is neutral for the short term as the pair trade below the 100 and 200-day moving average. On Friday the pair tested successfully the 50-day moving average and managed to rebound

On the upsaide, immediate resistance now stands at 1.2329 the daily high; more offers will be met at 1.2379 Thursday’s high while the 100-day moving average at 1.2447 is the next obstacle to the upside.

On the downside, first support for GBPUSD stands at 1.2282 today’s low, while more bids will emerge at 1.2261 the 50-day moving average. A convincing break below will open the way for a visit down to 1.2209 the low from September 5th.