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GBP/USD Fails at Resistance Despite UK GDP In-Line with Estimates

GBP/USD Fails at Resistance Despite UK GDP In-Line with Estimates

2014-05-22 08:58:00
David Maycotte,
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Talking Points

The British Pound fell against the US Dollar despite UK GDP reporting in-line with estimates, as back-ward looking data may fail to support bullish outlook.

The second revision of first-quarter UK GDP figures confirmed output grew 0.8 percent, confirming previous estimates. The year-on-year growth rate reported at 3.1 percent, the highest since the fourth quarter of 2007.

“The British Pound has enjoyed a swell in supportive monetary policy expectations,” says DailyFX Strategist Ilya Spivak, “and an upbeat GDP print certainly did not fall out of step with that dynamic.” Despite the positive back-ward looking data, Spivak suspects whether the data will be enough to carry teh British Pound higher as there is a chance that most if it has already been priced in.

This week has shaped up to be an important week for sterling traders. Yesterday, Bank of England Minutesfrom May 8-9 was released, and UK CPI reported better-than-expected on Tuesday.

GBP/USD failed at resistance, sinking to a fresh intra-day low following the release. For in-depth GBP/USD Technical Analysis.

GBP/USD Fails at Resistance Despite UK GDP In-Line with Estimates

GBP/USD 5-Minute Chart using FXCM Marketscope 2.0

-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to instructor@dailyfx.com.

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