Archived IMT (2009.10.23)

GBPUSD tumbles across the board after UK GDP showed a record 5 consecutive quarterly contractions; (-0.4% q/q, -5.2% y/y), which is a stark reminder to those BoE members pursuing a less dovish tone. GBPUSD predictably failing below the $1.6730 resistance (right shoulder of the H&S formation), seen retesting interim support of $1.6310 (38% retracement of the rally from the $1.57 low), followed by $1.6200. Any disappointment in US existing home sales woudl fruther weigh on GBP. EURGBP seen capped at 0.9230. Watch Ashraf on CNBC at 10:05 am GMT (11:05 am BST) discussing sterling and those GDP figures.