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 GBPUSD 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 GBPUSD currency pair continues forming an ascending wave. The price is forming the fifth wave with the target at 1.6400", wrote Roboforex.com analyst Igor Sayadov, expecting correction soon before starting a new ascending structure.