Pound Retreats Further, Bounce Is Possible

The Great Britain pound extended its earlier losses today as economic growth of the last quarter was revised down. Fundamentals were not completely bad though and may yet provide support for the currency.
Growth of Britain’s gross domestic product in the third quarter of 2012 was revised negatively from 1 percent to 0.9 percent. That is not bad result at all, considering that GDP was shrinking for three consecutive quarters. On top of that, current account deficit narrowed to £12.8 billion in Q3 from the revised deficit of £17.4 billion in Q2. The macroeconomic data was not that bad and the sterling slowed its decline for now.
GBP/USD dropped from 1.6276 to 1.6216 and GBP/JPY declined from 137.25 to 136.15 as of 14:14 GMT today.

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