• GBP/USD eased on Friday as the pound came under pressure following weaker-than-expected UK GDP data..
• Britain’s economy unexpectedly contracted in the three months to October, signalling a loss of momentum ahead of Finance Minister Rachel Reeves’ budget.
• The Office for National Statistics reported that gross domestic product fell by 0.1% in the August-to-October period.
• GDP slipped 0.1% in October, contrary to forecasts of a 0.1% rise. Despite the volatility of monthly data, the figures showed the economy has failed to register growth since June.
• Friday’s release raised doubts about the Bank of England’s assumption that the economy will grow by approximately 0.3% in Q4..
• Immediate resistance is located at 1.3455(Higher BB), any close above will push the pair towards 1.3480(38.2%fib)
• Strong support is seen at 1.3289(50%fib) and break below could take the pair towards 1.3246(SMA 20).
Recommendation: Good to sell around 1.3380, with stop loss of 1.3450 and target price of 1.3300.
