UK GDP meets expectations – Pound depreciating

EURGBP, M15

Preliminary UK GDP results for Q2 met expectations at 0.4% q/q growth, mostly a result of lower growth due to adverse weather conditions in Q1 (0.1%).

Despite the improvement, year-to-date (YTD) GDP continues the downward trend which started following the Brexit decision.

Source: FXStreet

EURGBP appears to have regained its strength on the basis of the above-mentioned continued deterioration in UK prospects. The 15-minute chart is suggestive of a corrective movement as of the start of the trading session, with Fibonacci retracement showing an immediate Resistance point at 0.8977 (at 61.8 Fib level) and a stronger Resistance at the latest swing high of 0.8991. Immediate Support level at 0.8969 (at 50.0 Fib level) with strong Support level at 0.8961 (at 38.2 Fib level).

 

 

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Dr Nektarios Michail

Market Analyst

HotForex

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