Post #15667

Sterling is Getting Pounded GBP/USD is losing momentum, down ~0.5% on the day. Price has not yet reached key support at the 38.2%, 50%, or 61.8% Fibonacci retracement levels — areas to watch closely for a potential bounce if sellers begin to exhaust. Sterling trimmed losses slightly after UK GDP surprised to the upside in November, helped largely by a temporary rebound in auto production. The data did little to shift the broader narrative: growth remains uneven, confidence is fragile, and momentum has faded since summer. Markets continue to price roughly 40 bps of BoE cuts by September, with economists warning the soft patch could persist into 2026. A firmer dollar and fading support from earlier fiscal optimism are weighing on GBP, with the next key catalyst being UK CPI on January 21. - Alan