According to the Office for National Statistics (ONS), in Q4 0211 the UK GDP growth slowed down more than expected (-0.3%). The major reason was a decline in manufacturing production and investments amid the prolonged eurozone crisis.
The activity in the UK service sector slowed down by 0,1%. The manufacturing industry saw a 0.7% decline. The construction sector slowed down by 0.2%.
At the same time, consumer spending grew by 0,4% against +0.5% (the preliminary forecast).
The UK’ Board of Exchequer expects the GDP to grow by +0.8%.
It should be noted that Mervyn King, BoE Governor, previously mentioned some risks for the country’s GDP growth, including the eurozone crisis, which threatens to affect the UK export.
According to the Volume Analysis Department of , GBPUSD has suspended its downtrend around a major level of support, which corresponds to the forecast. The trading volume is distributed so as to support the bears. It is recommended to open short trades during upward correction movements (when they are about to be over).
The level of support/resistance are the same:
