UK GDP Revised Up To 0.6% – GBP/USD Breaks Resistance

Revisions are not that common with UK GDP figures, but when they do appear, the impact is notable. Growth was revised up from 0.5% to 0.6% q/q for the fourth quarter of 2015 and year over year, it was also pushed higher from 1.9% to 2.1%.

GBP/USD breaks back above 1.4365 to 1.4387, completing a 60 pip rise from the downside.

Among the components, business investment remains depressed, but better than previously reported. The fresh figure is -2%. Other components were also revised a bit higher.

This is good news for the pound amid worries about a Brexit that weigh on it. BOE governor Mark Carney spoke earlier, but did not touch on monetary policy. He focused on his other role as the Chair of the FSB.

Not all is positive though: the current account deficit swells all the way to 32.7 billion, far worse than 21.2 billion expected and 20.1 billion seen beforehand. Also net lending to individuals, falls short of expectations with 4.9 billion instead of 5.1 billion expected.

On the positive side, M4 Money Supply rises by 0.9% instead of 0.1% predicted and the index of services also beats. Mortgage approvals came out at 73.9, within expectations.

Here is how this break looks on the Pound/dollar chart. Note that the pair is edging towards the round number of 1.44. Further resistance awaits at 1.1440.