GBP/USD fell sharply in the second half of the previous week and touched its lowest level in a month at 1.2033. Economists at ING expect the pair to challenge the 1.20 level soon.

Growth data in focus this week

“We expect the British economy to have narrowly avoided a technical recession in the fourth quarter. Still, a 1Q23-2Q23 recession is more than possible, although that could be milder than previously expected thanks to lower energy prices.”

“Growth data and BoE speakers will be the two domestic inputs for the Pound this week, although global risk sentiment, geopolitical developments and a supported Dollar may work against any positive domestic news.”

“Cable may heavily test 1.2000 soon.”