FXstreet.com (Barcelona) - The Pound has suffered a strong reversal on the back of an unexpected GDP contraction and after hitting a fresh 6-week high at 1.6690, the Pound has plunged all the way to 1.6410 in a matter of minutes.
At the moment, the pound moves at 1.6430 right above support level at 1.6425/35, and in case of further decline, next upport levels could be at 1.6340/60 and 1.6240 (Oct 19 low). On the upside, recovery from current levels could meet resistance at 1.6490/00 (Oct 20 high/22 low), and above here, 1.6635 (Oct 21 and 22 high).
UK GDP has declined 0.4% in the third quarter, against market consensus of a 0.1% advance, according to preliminary data which makes the sixth consecutive negative quarter, the largest recession period on record. Year on yea, UK GDP has contracted at a 5.2% pace.