The UK’s economy fell into contraction unexpectedly in the second quarter of 2019. The declines come on the back of the country’s uncertainty on its departure from the EU in October of this year. The UK’s second quarter GDP was down 0.2% on the quarter, against estimates of a flat print. Businesses held back on investment in the face of Brexit uncertainty. The contraction in the second quarter was the worst since 2012.
Will GBP/USD Continue to Fall?
The currency pair fell to a fresh two-year low by Friday’s close. The declines saw GBPUSD testing the previously established support area of 1.2082. A rebound off this multi-year support level could be possible. Price action is also pending a retest of the breached support level at 1.2511. A retest of this level to establish resistance is likely. But this will depend on whether the currency pair can hold off the declines from current lows.
