UK GDP disappoints

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

Related tags: Forex GBP

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