Forex: GBP/USD falls on contracting UK GDP by NIESR

The British Pound was one of the most sold currencies during the New York opening, after a first rally to 1.6131 high on a concerning US trade, from $-42.06B to $-48.73B in November, instead of narrowing to $-41.30B as expected by market consensus.

The NY opening selloff allowed the GBP/USD to get back to the 1.6100 handle as investors awaited UK GDP news. The GDP Estimate of the past 3 months has contracted 0.3% in December, according to NIESR. Data follows a 0.1% growth in the prior month in the UK. The publication triggered more selling, down to 1.6088 low.

“The GBP/USD currency pair continues forming an ascending wave. The price is forming the fifth wave with the target at 1.6400”, wrote analyst Igor Sayadov, expecting correction soon before starting a new ascending structure.