BUZZ-COMMENT-Flatlining UK economy keeps sterling outlook gloomy

Jan 16 (Reuters) - Grey skies remain above the pound after another worse-than-expected UK economic output number on Thursday, with 1.20 and 1.18 among GBP/USD bear targets.

UK gross domestic product rose by 0.1% in November, compared to a forecast increase of 0.2%. This was the third consecutive monthly miss, after data showed unexpected GDP contractions of 0.1% in both October and September.

Monetary Policy Committee dove Alan Taylor said on Wednesday that "with the economy weakening", the Bank of England should move quickly to cut interest rates.

All 65 economists polled by Reuters expect the BoE to reduce rates on Feb. 6, with 38 out of 63 predicting four cuts this year - which is Taylor's base case.

GBP/USD most recently threatened 1.20 in October 2023. The 1.18 level approximates to the 2023 low, which was plumbed in March that year.

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

((robert.howard@thomsonreuters.com))