Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
GBP/USD Remains Under Pressure After Weak UK GDP Release

GBP/USD Remains Under Pressure After Weak UK GDP Release

Nick Cawley, Senior Strategist

UK GDP and GBP/USD – Prices, Charts and Analysis:

  • UK GDP y/y (May) contracted by 24%
  • GBP/USD continues to slip lower.
GBP Forecast
GBP Forecast
Recommended by Nick Cawley
Brand New Q3 Sterling Guides
Get My Guide

The latest UK GDP figures make grim reading with the economy continuing to contract sharply on an annualized basis and just showing marginal growth for May. While the data for May was expected to be weak, due to COVID-19 lockdown measures, the harsh reality is that these figures may well put pressure on the UK government to look at new measures to boost growth. The UK economy did grow in the month of May by 1.8% but fell short of forecasts of 5.5%.

The ONS highlighted that the economy was ‘still a quarter smaller in May that in February’ although in the important services sector, ‘we saw some pickup in retail, which saw record sales online’.

UK GDP figures

Important UK economic data releases continue this week with the June inflation numbers released on Wednesday and the latest look at the UK employment and average earnings on Thursday. All the data is released at 7:00 UK.

GBP/USD has been moving lower since the start of the week and now trades around 1.2550. Initial support may come off the 61.8% Fib retracement at 1.2517 before a cluster of old lows and the 20- and 50-dmas come into view all the down to 1.2438.

DailyFX Economic Calendar

GBP/USD Daily Price Chart (February – July 14, 2020)

Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 5% -10% -2%
Weekly -10% -1% -6%
|Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

What is your view on Sterling – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.