United Kingdom second GDP estimate showed that the British economy expanded by 0.5% quarter on quarter for the first quarter of 2019, same as that seen in the initial reading, as markets expected. The yearly figure stands at 1.8%.
The business investment fell by 1.5 percent on Yoy basis, better than analyst’s expectation of 1.4% drop, but was largely offset by current account figures. The deficit came in at 30.045 billion pounds versus £32.0 billion pounds forecasted by economists.
GBPUSD was trading flat most of the day above but after the news inched higher at 1.2684. GBPUSD looks trapped between the 1.2660 and 1.2740 range for over a month as traders can’t decide about the direction of the next leg. I am neutral for the pair a wait and see stance is the approach at these levels. Support for the pair stands at 1.2644 the low from June 21, which if broken might accelerate the slide further towards 1.26 round figure. On the upside immediate resistance stands at 1.2687 the 50 hour moving average and if the pair manages today to close above it might continue with an attempt to 1.2724 the daily high.
GBPUSD traders now will turn the attention to US economic data later today and the news coming out from the G20 meeting in Osaka.Don’t miss a beat! Follow us on Twitter.