U.K. GDP grows 0.3% in first quarter, missing forecasts 0.5% , buy GBPUSD on dips !

UK 000FILEminimizer
UK 000FILEminimizer

Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.

The Office Of National Statistics in U.K said gross domestic product (GDP) expanded by 0.3% in the first quarter, missing forecasts for growth of 0.5%.

Note that the U.K.’s economy grew by 0.6% in the previous quarter.

Year-over-year, U.K. economy grew 2.4% in the three months ended March 31, below expectations for a gain of 2.6%.

This development will affect GBPUSD in 2 ways , short term and medium term :

Medium term : will talk about  that later in separated forecast (3 months forecast)…

Short term : It will affect the GBPUSD for couple of days ..

The GBPUSD has declined towards daily chart support 1.5187 , this level has been rejected on a 4 hour closing basis , according to the 4 hour chart , which already closed  15 min ago , the pair has printed support at 1.5173 levels on a 4 hour closing basis , stability above this level will keep pushing upwards , immediate resistance comes at the 1.5260 levels , a break would open 1.5300 levels ahead of 1.5350 levels , but in return ; a failure to overcome 1.5260 levels could mean a return to the 1.5173 levels ……In all , the GBPUSD is likely to consolidate within 1.5173/1.5260 range with possible to break higher towards the 1.5300/1.5350 levels….