The Pound can continue recovering. Overview for 10.09.2019

On Tuesday, GBPUSD is trading rather decently, but market players are obviously in favor of further correction. 

The British Pound is quite stable against the USD on Tuesday, but investors seem pretty positive. The current quote for the instrument is 1.2340.

Yesterday, the United Kingdom reported on the GDP for July, which added 0.3% m/m after not changing in June. The indicator was expected to expand by 0.1% m/m. the components of the report showed that all sectors of the country’s economy were doing all right, except the agricultural sector. 

Still, there are some problems in both construction and manufacturing, as well and the service sector, which lost the momentum despite being quite good in July. The service industry added 0.2% q/q and was the only one which showed a gleam of optimism, but how good may +0.2% be if the growth rate might have been much better and stable?  

Also, yesterday’s statistics showed that the Construction Output recovered by 0.5% m/m in July after losing 0.7% m/m the month before. Of course, the actual reading compensates the previous one a little bit, but the overall picture is quite sad. It’s bad news for the Pound – it has very little fundamental support.