Pound sterling lower against dollar, close to second daily support.

[RTFX-Trading]

At 10h15 CET, the Pound traded just below the first support of 1.4378 confirming our scenario on the Daily technical analysis, just before GDP figures for Q4 came out at 10h30 CET.

Following the lower revision to -1.6% of GDP for Q4 2008, the GBPUSD reached a low of 1.4332. The UK economy posted the largest quarterly contraction in GDP since the fourth quarter of 1980 as the global credit crisis throttled output and demand.

The Office for National Statistics said gross domestic product slumped 1.6% on the quarter and was lower 2.0% on the year in the final quarter of 2008. The previous reading of fourth quarter GDP showed declines of 1.5% on the quarter and 2.0% on the year. These figures confirm the UK has plunged into recession.

The cable is now trading at 1.4325 after reaching a daily low of 1.4308, close to second daily support 1.4294.

Nicolas Longchamp
Trading desk.
Realime Forex.
Geneva/Switzerland.