U.K. GDP slightly better than feared

The U.K. Office for National Statistics has posted 2Q GDP at -21.7% on year, slightly better than -22.4% on year expected. June industrial production was released at +9.3% (vs +9.0% on month expected), manufacturing production at +11.0% (vs +10.0% on month expected) and trade balance at 5.3 billion pounds surplus (vs 2.8 billion pounds surplus expected).

From a technical point of view, on a daily chart, GBP/USD remains on the upside, supported by its rising 50-day moving average (in blue). The daily RSI is well directed and no more overbought. Readers may therefore consider the potential for further advance above horizontal support at 1.2670. The nearest resistance would be set at horizontal resistance at 1.3205 and a second one would be set at set at 2019 top at 1.3515 in extension.

Source: TradingView, GAIN Capital


Related tags: Forex Forex GBP

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