The UK’s Office for National Statistics released the monthly GDP figures yesterday. In the month of July, the UK’s GDP grew 0.3% on the month. This beat estimates of a 0.1% increase. Manufacturing production was also stronger, rising 0.3%. Despite the beat on estimates, ONS cautioned not to read too much into one month’s data. Meanwhile, the Brexit saga continues as PM Boris Johnson vowed to part ways with the EU on October 31 st . This comes as lawmakers passed a no-deal Brexit law.
GBP/USD Posts a Bullish Engulfing Pattern
The currency pair was seen logging strong gains on Monday. This led to price action posting a bullish engulfing pattern on the daily time frame. However, divergence on the other time frames continue to keep the currency pair a bit uncertain. The support level has now moved to 1.2328 which could be tested in the near term ahead of further gains.