GBP/USD – Could drop to 1.20 on strong US GDP

Failure at 1.2273 despite upbeat UK GDP figure and drop in BOE rate cut bets followed by a retreat and a daily close at 1.2163; its weakest in two weeks makes the pair extremely vulnerable to strong US GDP print.

Speculation is rife that the US economy could have expanded at a fastest pace in 2 years in the second quarter. If the actually figure is above estimates, then the pair breach 1.2083 (Oct 25 low) and drop to 1.20 levels.