Cable continues to fall across the board. GBP/USD slid further to 1.6320, posting a fresh intra-day low. The pair continues it collapse form 1.6690 (one-month high) reached early on Friday during the European session. Currently it trades at 1.6351/55, 1.60% below today’s opening price. On the downside the next support below 1.6300 lies at 1.6240 (Oct 19 low).
The Sterling is suffering the biggest daily decline in a month and lost a big part of weekly gains.
Andrew Wilkinson, analyst at Interactive Brokers, affirms: “A sixth consecutive quarterly decline in British GDP marked the longest recorded string of negative growth readings since records began in 1955. A 0.4% quarterly decline confounded expectations for a 0.2% gain and created an immediate slump in the value of the pound (…) In Monopoly terms, Britain drew a “miss-a-turn” card from the Community Chest pile. Today’s data gives the British economy the appearance as the clear laggard mired in recession. But when you look at the pound relative to recent lows against its two majors, it’s actually performing rather well.”
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