GBPUSD Declines Post UK GDP

British Pound declined lately against the US Dollar, and the UK GDP release boosted the downside.

UK Gross Domestic Product released by the National Statistics posted an increase of 0.5% in Q3 2015, compared with the preceding quarter.

In terms of the yearly change, the UK GDP posted a rise of 2.3% in Q3 2015, compared with Q3 2014.

UK GDP

In the UK, the Gross Domestic Product, which is a measure of the total value of all goods and services produced by the UK was released by the National Statistics. The market was expecting an increase of 0.5% in Q3 2015, compared with the preceding quarter. The end result was in line with the forecast, and came in at 0.5%.

When we look at the yearly change, the market was aligned with a rise of 2.3% in Q3 2015, compared with the same quarter a year ago. The report stated that “GDP in volume terms was estimated to have increased by 0.5% between Quarter 2 (Apr to June) 2015 and Quarter 3 (July to Sept) 2015, unrevised from the preliminary estimate of GDP published 27 October 2015, marking eleven consecutive quarters of positive growth”.

The outcome matched the forecast, but the market is always forward looking and since there was no above the forecast result, the GBPUSD moved lower.

UK Total Business Investment

The UK Total Business Investment, which presents the total amount of capital expenditures made by private firms came in at 2.2% in Q3 2015, compared with the preceding quarter. It was on the higher side, compared with the forecast of 1.5%.

Technical Analysis – GBPUSD

The GBPUSD pair struggled throughout this week, and traded lower. The pair is currently heading lower and approaching towards the 1.5000 support area. It holds a lot of importance in the near term, and a break below it could take the pair lower moving ahead.

On the upside, the 1.5040-50 can be seen as a resistance area, followed by 1.5080.