Sterling Rebounds Despite Downward Revision to Q2 GDP


Sterling is slightly higher on the day despite lower Gilt yields as stock markets have rallied in Europe following a strong rebound of riskier assets in Asia. An unexpected downward revision to UK Q2 GDP is weighing on the currency pair.

Final UK Q2 GDP data show an unexpected down revision to 2.4% year over year from the 2.6% provisional estimate, though the quarter over quarter figure is unchanged at 0.7% growth. The quarterly growth figure is an improvement on Q1’s 0.4%, though deteriorating global conditions and survey evidences point to an ebb in Q3 growth back to a 0.5% rate.

Sterling rebounded and is poised to test resistance near an upward sloping trend line at 1.5230. Additional resistance on the exchange rate is seen near the 10-day moving average near 1.53. Support is seen near the recent lows at 1.5125. Momentum on the GBP/USD remains negative as the MACD (moving average convergence divergence) index is printing in negative territory with a downward sloping trajectory.

The post Sterling Rebounds Despite Downward Revision to Q2 GDP appeared first on Forex Circles.

Source:: Sterling Rebounds Despite Downward Revision to Q2 GDP

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