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British GDP growth was revised to the downside: 0.3% instead of 0.2%. No change was expected. The recession is deeper.

GBP/USD was trading around 1.5660 before the publication and is now just above the lows of 1.5640.

Britain officially entered a recession when the initial GDP estimation was released. The drop of 0.2% in Q1 2012 followed a contraction in output in Q4 2011.

In other British news, mortgage approvals, as recorded by the British Bankers’ Association, ticked up from 31.9K to 32.4K, within expectations for a rise to 32.3K. Business investment rose by 3.6% in Q1, better than 3.2% that was expected.

GBP/USD fell sharply yesterday amid the global “dollar storm”. The pair fell below 1.57 but stabilized around 1.5675. It then extended the falls prior to the release and reached 1.5639.

For more on cable, see the  GBPUSD forecast.

Significant support awaits at 1.56 – this was the trough recorded in March. The pound is relatively resilient in comparison with a few other currencies, as the fall in EUR/GBP shows. Nevertheless, it cannot fight the greenback at the moment.

David Miles, the only member who voted for an expansion of the Asset Purchase Facility (QE) will speak later on. With lower inflation and weak retail sales, more QE could come sooner than later.