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The UK economy grew 0.5% q/q in the  third quarter as expected. Year over year, the level was 2.3%. Both unchanged and as expected.

Nevertheless, GBP/USD fell before the release to a new low of 1.5054 before bouncing back up on the actual number, but still looks somewhat depressed.

Among the details, private consumption is up to 0.8% from 0.7% originally  reported and business investment is up as well  to 2.2%. These details  look good. The downside comes from higher imports.

In general, the UK economy is growing nicely with strong retail sales, higher wages (3% y/y) and positive growth figures. The  pessimism of the BOE regarding inflation seems unjustified or somewhat  short-sighted.

Perhaps the  disappointment comes from a weaker than expected rise in the Index of Services: 0.7% vs. 0.8% predicted, but this is not the top tier indicator here.

The fall of the pound

Further support awaits at the round level of 1.50. Resistance is at 1.515.

GBPUSD November 27 2015