The Pound finds relative strength after early morning economic data and solid GDP growth in the UK economy, correlation with GDP figures and economic growth could give support and strength to the Pound. The GBP/USD chart on a daily time scale highlights how the GBP/USD 1.34 support area held, seeing the forex market pricing in the exchange rate some Sterling strength going into Q4. The oscillators in the chart signal a short term buy opportunity with the MACD line crossing the signal line, the RSI 47 also approaching the midline 50 and gaining relative strength. The GBP/USD exchange rate trendline has drifted above the middle channel line where the IKH Tenkan line provides support, although the IKH signal a Bearish trend overall, as in fact, GBP/USD 1.363 could have a +1.6% exchange rate GBP/USD 1.384 potential to the upside, that would drive the GBP/USD price action near the 200 days moving average for a change of trend. GBP/USD chart technicals are bearish, the 200 days m.a. GBP/USD 1.384 would concretely signal a change of trend where the forex market would have to discount the USDollar weakness.
GBP/USD TECHNICAL INDICATORS NEUTRAL
Early morning macro-economic data from the UK highlight how the economy continued to grow in August with YoY GDP growth of 6.9%, although slightly decelerating from 7.5%. Industrial production 3.7%, Manufacturing 4.1% and Construction 10.1% all growing in the double-digits year on year do signal economic growth in the UK, which should keep its momentum into Q4, although supply-chain disruption and a slowing global economy could have a ripple effect on the UK GDP figures. However, the Trade Balance deficit in August grew to -14.93 billion Pound, signal the UK dependency on imports, thereby the slowing global economy and rising inflation could have dampening effects on economic growth.