Forex: GBP/USD nose dives on poor Q1 GDP

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Forex: GBP/USD nose dives on poor Q1 GDP

FITITOL--> FXstreet.com (Barcelona) - The sterling is falling sharply against the greenback after the economic activity in the UK has officially entered in recession, contracting 0.2% QoQ in the first quarter, missing estimates at +0.1%. On a yearly basis, the GDP came in flat, against +0.3% forecasted and down from last print at +0.5%. In the same tone, Index of Services also missed expectations, rising 0.2% in February vs. +0.6% estimated.

After hitting 1.6171, level last seen in Septembre 2011, the cross is now retreating 0.31% at 1.6096, with the next support at 1.6060 (high Apr.2) followed by 1.6039 (low Apr.20) then 1.6022 (MA10d) and 1.6009 (low Apr.19).
On the upside, a break above 1.6164 (high Apr.24) would open the door to 1.6167 (high Oct.31) then 1.6255 (high Aug.2) and 1.6335 (high Aug.31).