We usually get 3 data releases for UK GDP - preliminary, second, and final. The preliminary, which is the earliest tend to have most impact on the British Pound. Today, the Office of National Statistics released Q4 GDP data. Q4 GDP grew 0.6%, which was slightly better than the average forecast of 0.5% according to forexfactory.com. Also, it should be noted that the Q3 GDP number was revised up to 0.6% from 0.5%.(tradingeconomics.com)he UK economy advanced 0.6 percent on quarter in the three months to December of 2016, the same pace as in the previous period and better than market expectations of a 0.5 percent expansion, preliminary estimates showed. Services industries were the main drivers of growth, with a strong contribution from retail sales and travel agency services. Meanwhile, construction rebounded slightly and production industries showed no growth, as a sharp contraction in mining and oil extraction offset a rebound in manufacturing and utilities. Looking at 2016 as a whole, growth slowed modestly to 2 percent from 2.2 percent in 2015 and 3.1 percent in 2014. GDP Growth Rate in the United Kingdom averaged 0.61 percent from 1955 until 2016, reaching an all time high of 5 percent in the first quarter of 1973 and a record low of -2.70 percent in the first quarter of 1974. (tradingeconomics.com)If we look at the reaction in GBP/USD and EUR/GBP, we would see that the British Pound has already been gaining, but actually stalled after the GDP data. Some will call this type of lead up and reaction "buy the rumor, sell the fact". I think we will indeed find such dynamic in the short-term. However, in the bigger picture, the Sterling should be getting more resilient.GBP/USD 4H chart 1/26(click to enlarge)Bullish Reversal:- Even before the GDP data, GBP/USD looked like a market starting a bullish reversal attempt.- Therefore, if the market does "sell the news" on this better-than-expected GDP release, we should have a limited bearish outlook on the pair. - In fact, if price falls back towards the 1.23-1.2350 area, I would consider buying, especially if the 4H RSI falls back near 40. - We will take a look at the market again if this scenario materializes.- There is still upside towards the 1.28 handle, where we should anticipate strong resistance.EUR/GBP 4H Chart 1/26(click to enlarge)Bearish Breakout:- The EUR/GBP shows a market that has broken a rising trendline as well as the cluster of 200-, 100-, and 50-period simple moving averages (SMAs) in the 4H chart.- This means the market is at least not bullish, and could be turning bearish.- If the market is turning bearish, we should see resistance in the 0.86-0.8650 area if the market pulls back up there. - In the bearish scenario, the 0.8350 lows are in sight. The 0.83 level will also be in sight, but we should anticipate support here.