UK GDP Growth in August Meets Expectations
The latest UK data has revealed that GDP growth in August was in line with expectations, showing a 0.2% increase month-on-month and the same on the 3-month/3-month measure, according to Scotiabank’s FX Chief FX Strategist Shaun Osborne.
Key Points:
- Industrial and manufacturing activity exceeded expectations in August.
- Construction and services saw slightly lower growth than anticipated.
- The overall economy is expected to experience modest growth in Q3.
GBP Shows Signs of Stabilizing around 1.3050
Despite the data release, the Pound Sterling (GBP) showed little reaction. However, there are indications that the GBP is stabilizing around the 1.3050 level.
Osborne highlights that there are emerging signs of stronger demand for GBP on dips below 1.3050 on short-term charts. Additionally, the spot market is displaying an inside range consolidation signal on the daily chart, suggesting a potential stabilization of Cable losses.
Technical Analysis:
- Resistance is seen at 1.3110/15.
- Short-term strength will be confirmed with gains above this level.
Analysis of the Market Situation
The UK GDP growth data for August has provided insight into the country’s economic performance. Despite meeting expectations, the data has not had a significant impact on the Pound Sterling. However, technical analysis suggests that the GBP may be stabilizing around the 1.3050 level, with potential for short-term strength if resistance at 1.3110/15 is breached.
Investors and traders should monitor these key levels closely to gauge the GBP’s future direction and assess potential trading opportunities.