Source: ForexYard
The most important issue facing the Pound’s stability is the implications of the recently released figures of the British Prelim GDP publication which shocked the market. The release indicates that the British economy is facing the longest protracted decline in recent history, and the GBP responded by dropping over 200 pips versus the USD and EUR.
The impact which this may have on the Pound in the near future may be very negative indeed. This is contrary to the recent upward trend that the GBP made over the past few days. Forex traders need to take into consideration that the Pound faces the threat of declining several hundred pips against the major currencies in the weeks ahead due to this poor economic signal.
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