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The British economy grew by 0.3% in Q1 2013, beating expectations. It was expected to grow by 0.1% in Q1 2013, avoiding an official recession after contracting in Q4 2012. The year over year growth is +0.6%, also significantly above expectations of +0.3%.  No triple dip recession for now.

GBP/USD was trading around 1.5287 before the publication, falling from highs seen earlier. It is now trading at nearly 1.54, a leap of more than 100 pips.

The economy in Great Britain enjoyed strong growth in Q3 – growth that ended a long, second recession since the financial crisis.

Update: GDP/USD already rose to much higher ground, but fell back. 1.54 now provides support after the leap and the gap. Here is now it looks like:

GBPUSD Gap After Positive UK GDP April 25 2013

For more on the pound, see the GBPUSD forecast, and here is a live chart of the leap:

[do action=”tradingviews” pair=”GBPUSD” interval=”60″/]

So, the UK avoided a triple dip recession, at least for now. It’s important to remember that this is only the first release, and that two more revisions are scheduled.

But, it is hard to believe that an initial estimation of +0.3% will turn into flat growth or a negative one.