GBP/USD: Sterling Reverses Upside Swing to Drop Under $1.23 Ahead of GDP Data

The British currency enjoyed strong buying momentum last week when and Monday when it shot up to near $1.25.

• The GBPUSD pair slipped to start Tuesday dealmaking, moving from a daily peak of $1.2340 to a current rate of exchange near $1.23. Previously, on Monday, the pair shot up to a three-week high of $1.2430, hit the 200-day moving average and reversed course in a sharp decline.
• The UK’s currency saw increased optimism from traders last week when the US published its monthly jobs report. Turns out, America’s employers added fewer-than-expected workers in October. The figure landed at 150,000, missing expectations for 180,000 new hires.
• With that said, a new raft of economic data is coming. The UK’s gross domestic product number is slated for a Friday release. It’s a three-fold report with monthly, quarterly, and annual figures. More importantly, quarter-on-quarter growth is set to have contracted by 0.1% from a previous expansion of 0.2%. Annual growth for the September quarter is pinned at 0.5%, a step back from 0.6%.