FXstreet.com (Córdoba) - Cable fell sharply on Friday after GDP showed that the United Kingdom is still in recession. GBP/USD was trading at one-month highs at 1.6690 and after the number started to plunge. The Pound found support at the 1.6300 zone, after a 390 pips decline. The pair currently trades at the same levels it had at the begging of the week, near the 1.6300 zone.
The ecPulse.com analysis team affirms: Gross domestic product in the third quarter shrank by 0.4 percent from the second quarter contraction 0.6; while markets were expecting an expansion of 0.2 percent, while the annualized contraction eased to -5.2% from -5.5%, which is worse than the market contraction of 4.6 percent. The ongoing recession is a result of the dominate sectors still stressed from economic conditions as we saw that the service sector, which represents 75% of GDP on the quarter contract 0.2 percent; the manufacturing sector accounting for 15% of growth contract 0.2%; while the construction sector contributing 6% to GDP shrink 1.1 percent.