BUZZ-COMMENT-Zero sum game may depress GBP/USD to 1.20

Dec 24 (Reuters) - The probability of cable falling to 1.20 for the first time since March 2023 will increase if the British economy continues to splutter while the U.S. economy continues to motor.

UK gross domestic product for the third quarter was revised down from 0.1% to zero on Monday, four days after the Bank of England revised down its fourth quarter GDP estimate from 0.3% to zero.

The BoE's downwardly revised forecast came less than a week after data showed the British economy unexpectedly shrank by 0.1% in October.

In contrast, annualised U.S. Q3 GDP growth was upwardly revised by 0.3% to 3.1% last week.

CFTC data on FX positioning showed the net GBP long declined to 21,647 contracts in the week ended Dec. 17 - before GBP/USD dropped to test November's six-month low of 1.2475 on hawkish guidance from the Federal Reserve and the BoE's dovish hold.

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(Robert Howard is a Reuters market analyst. The views expressed are his own)

((robert.howard@thomsonreuters.com))