A small miss on year over year GDP: 2% instead of 2.1% initially reported and expected. Quarter over quarter, things are bang on expectations at 0.4%. Business investment missed with a fall of 0.5% against 3.2% expected. Also the BBA’s mortgage approvals did not meet expectations by sliding to 40.1K against 44.8K predicted.
GBP/USD looks OK in the immediate aftermath maintaining the same levels.
The UK was expected (see full preview) to confirm the initial GDP read in the second release: 0.4% q/q and 2.1% y/y. At the same time, business investment and BBA mortgage approvals are released as well.
GBP/USD traded around 1.4720 towards the release.
The pound has been mostly moving on the ebb and flow of the Brexit polls. The Bremain campaign has gained some ground and this certainly helped the sterling shine.
1.4780 works as resistance after serving as a swing high. Support awaits at 1.4650 and 1.4580.
Interesting moves have been seen lately in GBP/JPY which boasts nice technical behavior. 162.50 worked nicely as resistance. It is followed by 1.63.80. On the downside we have 160 (a round number) and this is followed by 158.
Here is a snapshot of Pound/yen:
