Forex Marketz Daily Forex News – Fully Markets Update
GBP/USD (1.6182)
The United Kingdom has released its final gross domestic product number (GDP) for the second quarter. The British economy grew at 0.9 percent versus the 0.8 percent in the first quarter of this year. The annual growth came in at an impressive 3.2 percent growth which met expectations. This means England is seeing high levels of economic activity and expansion. This supports the inflationary pressures we are seeing. This could mean the Bank of England (BOE) might tighten policy sooner and raise rates before expected. This would be a bullish move for the Sterling.
Before the release, the GBP/USD traded higher near 1.6290 then soared higher after the release. It then lost steam. Technically speaking, we have been trading sideways the last several days. A close below 1.6090 opens the doors towards 1.5955. Should the market move higher, then a close above 1.6250 tests 1.6256. A break above the latter level challenges 1.6320 and higher.
