In the UK, the second quarter growth forecast for the fourth quarter of 2016 was announced on a quarterly basis, at 0.7%. Exports increased by 4.1% on expectations, while imports fell by 0.4%. Personal consumption is expected to increase by 0.7% while operating investments decline by 1.0%. The December services index was up 0.2% on expectations.
However, we see that 2.0% on annual basis is below expectations. In short, if we look at the details, we are confronted with mixed growth data. GBPUSD slightly moved upwards in the first reaction, but the rise in the Dollar index has regressed down to 1.2440 with a recovery.
If the sales pressure continues, 1.2400 area, where the 50 and 100-day moving averages pass through below, is an important support and the downward movement can continue with the passage of time. On the ups, we expect 1.2480 and 1.2500 zones to work as resistance.