GBP/USD Faces MAs After Climbing Higher on the Q2 GDP Report - Forex News by Strategia Forex
These MAs should turn into resistance now

GBP/USD Faces MAs After Climbing Higher on the Q2 GDP Report

Posted Monday, September 30, 2019 by
Skerdian Meta • 1 min read

The final reading for Q2 GDP in UK was released a while ago. Q2 remained unchanged at -0.2%, which means that the British economy contracted by 0.2% in that quarter. But the YoY GDP number was revised higher to 1.3% from 1.2% previously estimated.

The deficit in the current account for Q2 came in higher at -25B against -19.2B expected. Q1 was also revised lower to -33.1B from -30B. Business investment for Q2 was revised a tick higher, showing a 0.4% decline, compared to -0.5% in the previous estimate, so that’s still a contraction despite the revision higher.

UK mortgage lending came lower as well at 3.85B vs 4.2B expected, but the GBP has climbed higher after this report. Although, GBP/USD is now facing the 20 SMA (grey) and the 100 SMA (red) on the H4 chart, as shown above.

Both these MAs have provided support or resistance before, so they should provide some resistance again now. They stand at 1.2340 and I might go short from there if the price climbs to that level.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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