December 18, OctaFX – Sterling moved slightly higher in overnight trading despite increasing Brexit fears. Research by the British Chamber of Commerce showed that the country will have the weakest growth since the last recession.
This year, the chamber estimated that the economy will grow by 1.2% before moving up to 1.3% in 2019. This will be the weakest growth since the country emerged from the global financial crisis.
The reason for the soft growth is that businesses have frozen investments ahead of the Brexit vote. This came as Jeremy Corbyn tabled a motion of no-confidence in Theresa May yesterday.
GBPUSD Technical Analysis
The GBPUSD pair moved to a high of 1.2648 as it tried to reach the important resistance level of 1.2670. The current price is slightly below the 25-day EMA. With the trend being driven by low volumes, there is a likelihood that it will not last. Therefore, the price could continue declining as traders continue to worry about the weak growth.
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