The main economic data release was the release of the latest GDP data from the UK although it has had a limited impact on the Pound. Economists at MUFG Bank point out the next support levels in the GBP/USD pair.

Weak end to the year for UK economy narrowly avoiding technical recession

“The UK contracted more sharply than expected in December by -0.5%. As a result, the UK economy recorded flat growth for Q4 as a whole just narrowly avoiding two consecutive quarters of negative growth.”

“The continued weak growth outlook will support expectations that the BoE is close to the end of their rate hike cycle.”

“The recent dovish shift in policy guidance from the BoE has weighed on Pound performance which alongside the hawkish repricing of Fed policy has dragged Cable back down towards support at the 1.2000 level. The 200-Day Moving Average also comes in at 1.1950 which is the next level of support.”