Growth is slowing in the UK: the economy grew by 0.5% q/q, worse than 0.6% expected and 0.7% in Q2. Year over year, we have a small drop to 2.3% from 2.4% beforehand.
GBP/USD is reaching down to support at 1.53 but quickly bounces off this level.
Among the components, services rising +0.7% and construction dropping 2.2%. This is the first release of GDP for the third quarter. Two revisions will follow, but usually they don’t materially change the outcome.
Despite the disappointment, this is still OK growth.
The United Kingdom was expected to report a quarterly growth rate of 0.6% in Q3, slightly slower than 0.7% in Q2. Year over year, the figure was predicted to stand at 2.4%, exactly the same as in the previous quarter.
GBP-USD traded around 1.5330 before the release, sticking to the 1.53 – 1.5370 range but weakening – a leak?
Higher resistance awaits at 1.55. Lower support is at 1.52.
The economy in Britain has been doing well according to recent figures: retail sales beat expectations and it wasn’t the only figure to do so.
Here is the preview: trading the UK GDP with GBP/USD.
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