The Bank of England governor told raising interest rates might be appropriate if the economy stayed on track. Even though he added that tightening would be limited and gradual that was enough to start opening longs.
GBP/USD posted highs at 1.3442 but the happiness resulted to be short-lived. A little after the UK published its GDP third estimate. In a nutshell: bad news. Slow pace of growth in the 2nd quarter and the worst data in the last 4 years.
Traders harried up with locking profits in. After 3,5% growth in September GBP/USD plunged to the 1.3353 lows.
The pair, however, managed to recover some points to the 1.3380 levels. Yet, it seems that GBP may continue its way south because real data reflects the current situation way better than words.
Most of all, the markets have already priced in the hawkish BoE, so, nice try, Marc.