Forex – GBP / USD slips lower despite yes Data UK GDP

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Forex - GBP/USD slips lower despite U.K. GDP data

The pound fell lower against the US dollar Wednesday, despite data growth in the second quarter of UK is optimistic, as investors remained cautious ahead of the policy statement of the Federal Reserve, due to the end of the day and the Bank of England policy meeting in the next week.

GBP / USD hit 1.3106 during early trading European morning trade, the session low; the pair subsequently consolidated at 1.3113, falling 0.14%.
Cable was likely to find support at 1.2968, the low of July 12 and resistance at 1.3293, the high of July 22.

The Office for National Statistics said UK gross domestic product increased 0.6% in the three months to June, above forecasts of 0.4% growth. The UK economy by 0.4% in the previous quarter grew.

Year after year, economic growth UK expanded 2.2% in the second quarter, well above the forecast expansion of 2.0%. The UK economy has expanded at an annualized rate of 2.0% in the first quarter.

Data for the second quarter is the final measure of growth in the run up to the UK June 23 referendum that led to the British decision to leave the European Union, known as Brexit period.

According to a Bloomberg survey released Wednesday, the consensus expects the UK to contract by 0.1% in the third quarter.

Investors were now eyeing next policy meeting of the Bank of England amid growing expectations of a rate cut.

The Financial Times reported Tuesday that Martin Weale, member of rate-setting committee of the Bank of England, ceased to oppose the relaxation and now favored immediate stimulus.

Market participants were also looking ahead of the Fed decision due Wednesday afternoon. While most investors expect the Fed to leave its monetary policy unchanged this week, could give clues on the timing of future rate increases.

The pound was also lower against the euro, with EUR / GBP rising 0.24% to 0.8391.

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