- The pound sterling extends weakness on the day as final revision of UK GDP fails to provide any additional boost.
- The final revision of UK GDP, showed Q4 2017 economic growth matched original estimates and stood at 0.4% q/q.
- On the other side, German employment data showed Germany’s jobless total dropped more than expected in March and unemployment hit a record low.
- Federal Labour Office data on Thursday showed the seasonally adjusted jobless number fell by 19,000 to 2.373 million, more than the 15,000 forecast in a Reuters poll.
- EUR/GBP was trading up 0.27% at the time of writing, bouncing off from a brief dips below 5-DMA support.
- Technical indicators are turning slightly bullish. RSI is biased higher and Stochs have rolled over from oversold levels.
- The pair has bounced off brief dip below 61.8% Fib with a dragonfly doji formation. We see scope for test of 20-DMA at 0.8823.
- Close below 5-DMA could see resumption on weakness.
Recommendation: Good to go long on dips around 0.8750, SL: 0.8715, TP: 0.88/ 0.8820
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