• GBP/USD slipped sharply lower on Friday after data showed the U.K. economy unexpectedly contracted in October
• Official data showed UK economic activity contracted by 0.1% in October, while economists had forecast a 0.1% rise following a 0.1% decline in September.
• The Bank of England is expected to keep rates unchanged at its policy meeting next week. However, the data may lead traders to increase expectations for faster rate cuts next year.
• At GMT 15:15, Sterling was last down 0.38% on the dollar at 1.2625, its lowest since Dec 4th
• Immediate resistance is located at 1.2677 (Daily high), any close above will push the pair towards 1.2728(50%fib).
• Support is seen at 1.2623(38.2%fib) and break below could take the pair towards 1.2539(Lower BB).
Recommendation: Good to sell around 1.2650 with stop loss of 1.2720 and target price of 1.2550
