GBP/USD remains offered, moving steadily lower, to a new 1-week low at 1.2480.
Today's UK May GDP estimates misses nL5N2EL137 are weighing on the pound versus the USD, EUR and yen.
The weak GDP data hints that anticipation of a V-shaped recovery off pandemic lows may have been premature.
Indeed, UK economic pundits are now eyeing more of a W-shape, with fits and starts, before a sustained recovery sets in.
Adding to the dour UK growth and inflation outlook is lingering uncertainty surrounding EU-UK trade talks.
The unsettled nature of the UK's economic relationship with its key trading partner is likely to inhibit investment.
This as foreign and domestic decisions on UK investment are delayed pending clarity on that future UK-EU trading relationship, post-Brexit's Dec.
31, 2020 deadline.
After three failed attempts, GBP/USD has backed away from its recent trend highs near 1.2670, just ahead of more firm resistance by its 200-DMA at 1.2702.
With UK GDP and Brexit expectations on the wane, GBP/USD bulls are exiting recent longs.
Tuesday's probe of 21-DMA support by 1.2483 opens the way for a test of 1.2460, the 50% Fibo of 1.2252-1.2668's June-July range, below which puts Jun.
29's 1.2252 low in sharper focus.
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