GBP/USD climbs as UK GDP shows 0.2% growth in August
GBP/USD advanced 0.4% to 1.3075 following the release of positive UK economic data showing the economy returned to growth in August. UK GDP expanded 0.2% month-over-month, matching expectations and reversing July's stagnation. The services sector led the recovery with 0.1% growth, while production output surged 0.5%. Sterling strength was further supported by declining US dollar momentum ahead of key US retail sales data. The pound found immediate resistance at 1.3100, a level that has capped gains multiple times this week. Support remains firm at 1.3040, aligned with the 50-day moving average. Traders are now positioning for potential Bank of England policy shifts, as returning growth could delay anticipated rate cuts. The positive GDP print reduces recession fears and may prompt the BoE to maintain its hawkish stance longer than previously expected.
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