The British pound fell sharply on Monday following weak GDP data. For the month of December, the UK’s gross domestic product fell 0.3%.
The report sparked comments by BoE Governor Mark Carney who said that the next move by the BoE will be a rate cut. Investors are pricing in the possibility of a rate cut as early as the January monetary policy meeting.
GBP/USD Slips to Lower Support
GBPUSD fell briefly to the 1.2960 level of support. This confirms the downside target of the descending triangle pattern. However, we expect a firm retest of the support level. There is a possibility that a rebound could see GBPUSD testing 1.3100 resistance.
