FXstreet.com (Barcelona) - The preliminary release of the UK Q3 GDP came in much stronger than expected, flat on the yearly basis (above 0.5% consensus) and rising by 1.0% quarterly, instead of 0.6%. The immediate market reaction was a rally of the British Pound against its counterparts, allowing the GBP/USD to break easily above the 1.6100 mark and to print a high at 1.6128.
The economic calendar also provided the release of the UK index of services (3m/3m) in August, up from 0.1% to 0.2%, disappointing investors by being below the 0.5% consensus.
“The rebound is viewed as corrective and we look for the market to fail at 1.6071/1.6137, this is the 55 day ma and the short term downtrend”, wrote Commerzbank analyst Karen Jones, expecting a negative bias while below 1.6137 and initial support at 1.5912/00, followed by the 200-day MA at 1.5833.
The economic calendar also provided the release of the UK index of services (3m/3m) in August, up from 0.1% to 0.2%, disappointing investors by being below the 0.5% consensus.
“The rebound is viewed as corrective and we look for the market to fail at 1.6071/1.6137, this is the 55 day ma and the short term downtrend”, wrote Commerzbank analyst Karen Jones, expecting a negative bias while below 1.6137 and initial support at 1.5912/00, followed by the 200-day MA at 1.5833.
