Sterling helped by growth figures

The pound was boosted by a report from the Office of National Statistics (ONS), stating that the UK economy did in fact grow by 0.7% in the last quarter of 2013.

The GBP/USD is trading at $1.6622, up 0.1%, after the ONS confirmed the British economy grew between October and December. The news wasn’t all positive, as the UK’s budget deficit was larger than expected and this could impact the economic recovery.

The pound has been losing ground against the US dollar since the situation in Ukraine arose. This is more to do with dollar strength than pound weakness, and the possibility of a trade war sent traders to buy a quality currency.

The cable has been in an upward trend for the past few trading sessions, and the 50-period moving average is providing support at $1.6596. If the University of Michigan consumer confidence comes in below the expected 80.6 reading, we could see the pound retest the recent high of $1.6655.

Spot FX GBP/USD chart

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