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UK GDP Improves; GBP/USD Unimpressed

UK GDP in Q1 2014 came in at 0.8%. This improved on the 0.7% seen in Q4 2013, but missed forecasts of around 0.9-1.0%. 

Compared to Q1 of 2013, GDP has grown 3.1%.This annual rate is the highest since late 2007. 

The GDP growth rate is slightly lower than expected but nevertheless reflects an improving economy.. However, traders held GBP/USD from its week's highs made on Monday. 


(gbpusd 1h chart, 4/29)

Consolidation: It is in consolidation for about 2 weeks, with a bullish bias, and between 1.6762 and 1.6857.
Traders did not push into new highs after the UK GDP data, and instead pulled GBP/USD back towards the middle of the consolidation range, just above 1.68. 
Support: A break below 1.6760 will be needed to introduce a bearish outlook. Otherwise, GBP/USD remains neutral-bullish in the very short-term, and bullish in the daily chart.

Overbought: The daily stochastic suggests a bearish attempt coming up because it reflects overbought condition. But we should wait for a break below 1.6760 before considering this scenario.