FXstreet.com (Barcelona) - The GBP/USD plunged as UK Q4 2008 GDP contracted the most since 1980 and Bank of England MPC member David Blanchflower said the UK recession may intensify significantly. I expect the first quarter to be worse than the fourth, probably significantly worse, Blanchflower said.

As Hans Nilsson, analyst at CMS Forex said: The GBP/USD has been pressured by concerns about the solvency of the UK banking system.

The GBP/USD is in a downward sloping trading channel and likely to test the January 23 low of 1.3502. There are support at the 1.41 handle and resistance from the upper trading band in the 1.46 area.