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UK GDP Revision Figures

James Boston
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UK Gross Domestic Product data has just been released for Q4 2013, the Year on Year figure came in at 2.7% against a consensus estimate of 2.8% and a prior of 1.9%. The Quarter on Quarter number was 0.7% versus consensus of 0.7% and a previous of 0.8%.

No real surprises were anticipated in these revision figures and none were delivered. The slight revision downward in the annual number is being considered more as a rounding issue than as any particular signs of a falling back in British growth.

Despite the business as usual nature of the GDP numbers the pound sterling has experienced a volatile morning as it yet again struggled to recover from the mid 1.66s against the Dollar, a level at which it has shown itself to be considerably comfortable over the past few sessions.

Ahead of the UK Consumer Confidence and House Price figures on Friday there is little to give the market any reason to buy the British Pound. This makes it highly unlikely that GBPUSD will be able to find the momentum to break above the key resistance level of 1.6720 in the short term. The pair has tested this level twice over the last 24 hours but faced a sharp sell off both times.

Sterling has been in a subtle but defined downward channel since setting the long-term high just above 1.68 earlier in the month. There is however still a bullish feel around the UK economy and in particular the British Pound. Fresh impetus will be required to encourage another attempt on the 1.68 level, this is not proving to be present in the more second tier economic data releases and it is looking like we will have to wait for some Bank of England guidance to gain sufficient momentum for another defined move higher.

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