UK GDP disappoints
U.K. GDP growth for May was released at +1.8% on month, below the expected +5.5%.
Share this:
Earlier this morning, U.K. GDP growth for May was released at +1.8% on month, below the expected +5.5%, and industrial production was published at +6.0% (vs +6.5% on month expected). Manufacturing production increased 8.4% on month, vs +7.8% on month expected. Yesterday, Bank of England Governor Andrew Bailey said the U.K. economy is recovering but he is very worried about the jobs market.
From a technical point of view, on a daily chart, GBP/USD is posting a pullback but remains within a bullish channel in place since May and is supported by its 50-day moving average (in blue). The daily RSI stands within its buying area between 50 and 70. Readers may therefore consider the potential for further advance above horizontal support at 1.2400. The nearest resistance would be set at June top at 1.2815 and a second one would be set at set at horizontal resistance at 1.2980 in extension.
Source: TradingView, GAIN Capital
Earlier this morning, U.K. GDP growth for May was released at +1.8% on month, below the expected +5.5%, and industrial production was published at +6.0% (vs +6.5% on month expected). Manufacturing production increased 8.4% on month, vs +7.8% on month expected. Yesterday, Bank of England Governor Andrew Bailey said the U.K. economy is recovering but he is very worried about the jobs market.
From a technical point of view, on a daily chart, GBP/USD is posting a pullback but remains within a bullish channel in place since May and is supported by its 50-day moving average (in blue). The daily RSI stands within its buying area between 50 and 70. Readers may therefore consider the potential for further advance above horizontal support at 1.2400. The nearest resistance would be set at June top at 1.2815 and a second one would be set at set at horizontal resistance at 1.2980 in extension.
Source: TradingView, GAIN Capital
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
US Core PCE Preview: Stale or Significant for the Fed
Core PCE inflation takes center stage Wednesday, with traders watching for signs of renewed price pressure and clues on whether the Fed could hike again in October.
Australian Dollar Forecast: AUD/USD Four-Week Slide Nears Critical Uptrend Support 9 29 2026
Aussie momentum has deteriorated sharply into quarter-end, with inflation, Core PCE and NFP on tap as AUD/USD closes in on a pivotal technical threshold.
Euro Forecast: EUR/USD Tumbles Towards Yearly Low as Daily RSI Goes Oversold
EUR/USD has been hit hard in the final month of the quarter as USD strength has shown up in a big way. With the pair set to challenge its yearly low as RSI has pushed into oversold territory, is there a chance for a pullback with some big headline risk hitting in the US over the next few days?
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.