Britain’s Economy Jumps by 1.1% in Q2 – Pound Leaps
Posted on July 23, 2010 by Yohay
Filed Under Forex News | 3 Comments
The British economy grew by 1.1% in the second quarter of 2010 according to the first release. This is a very impressive leap, much higher than 0.6% that was expected. GBP/USD reacts with a leap against the dollar, breaking the 1.5350 resistance line and continuing north. Update on the recovering Pound.
Early expectations stood on a growth rate of 0.6%, double the growth rate of Q1. The actual result, 1.1%, is almost double the early forecasts and almost 4 times the growth rate in Q1. Let’s see the lines:
GBP/USD now trades at 1.5397, up from around 1.5300 before the release. The release, at 8:30 GMT, created a gap in the 30 minute graph, as this result took traders by surprise.
Above 1.5350, the next minor line of resistance is at 1.5470, which was a peak last Friday. Much more significant resistance is found at 1.5520, which was a stubborn line of resistance, tested multiple times in April.
Above, 1.57 provides minor resistance, after being a line of support last year. 1.5833 is already a very strong line, serving as a support line before the Pound collapsed, and capping an attempt to recover afterwards.
In case the Pound falls, it will find support at the 1.5350 it just broke, followed by 1.5230 and 1.5130, which served as minor lines of support and resistance recently.
Earlier this week, the MPC meeting minutes showed that there’s still only one member, Andrew Sentance, that supports a rate hike. The others wanted to see low rates in order to help the economy. Now it seems that the economy is doing well, and that a rate hike won’t hurt the attempts to recover.
Also retail sales, published yesterday, came out better than expected, with a rise of 0.7% (0.5% expected) and provided another sign that the economy is improving. Will we soon see a rate hike in Britain?
Want to see what other traders are doing in real accounts? Check out Currensee. It’s free..
Enjoyed the post? You may want to subscribe by RSS feed or Email.Tags: British Pound,cable,GBP/USD,GDP,growth
Comments
3 Responses to “Britain’s Economy Jumps by 1.1% in Q2 – Pound Leaps”
Leave a Reply
Popular Forex Posts
Daily FX Headlines- EUR/USD: Trading the U.S. ISM Manufacturing Report August 31, 2010
- EUR/USD Range Should Hold Ahead Of ECB Decision August 31, 2010
- Gold Stubbornly Higher August 31, 2010
- Swiss Franc Focus Remains on 10130 August 31, 2010
- Japanese Yen Trend Defined by Channel August 31, 2010
-
Stay up to date!
-
-
very nice post ,improve knowledge
nice post
[...] British GDP already posted a big surprise in the first release – 1.1% instead of 0.6% that was predicted. It then boosted the Pound and sent the bulls raging. Also now, the upwards revision surprised economists that merely expected a confirmation of the first release. But this time, the reaction was very mild: [...]