The latest quarterly GDP report from the UK showed that the economy logged a flat growth rate. For the three months ending December 2019, the gross domestic product was unchanged on the quarter.
This follows a 0.5% increase in the third quarter of 2019. The increase in the services and construction sector was offset by the declines in the manufacturing and auto industry.
GBP/USD Fails to Capitalize on Gains
The cable initially jumped on the GDP report, but later into the day, prices failed to build upon the momentum. As a result, GBPUSD briefly tested the price of 1.2960 before pulling back.
If this momentum continues, we expect a continuation to the downside. Alternatively, price action could remain steady just below the resistance area for a while.
