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GBP/USD breaking higher ahead of UK data, near 1.4500

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The GBP/USD pair recovered losses and jumped higher on the bids over the last hours as markets remain expectant of upbeat industrial figures from the UK.

    GBP/USD awaits UK data, Yellen

    The GBP/USD pair trades 0.18% higher at 1.4498, retreating quickly from fresh session highs of 1.4510. The major caught a fresh bid-wave on the back of a drastic turnaround in risk conditions as the European stocks rebound higher tracking the ongoing recovery in the oil prices.

    Moreover, expectations of slight improvement in the UK’s factories also lifted the sentiment around the pound, driving GBP/USD higher beyond 1.45 handle. The UK industrial output in December is seen to show 0.1% dip on a monthly basis after the 0.7% drop reported a month ago, and adding 1.0% on an annual basis compared to the 0.9% growth in November. Meanwhile, manufacturing production may rise 0.1% m/m, following the 0.4% decline in November, and a fall of 1.4% y/y after a 1.2% drop a month ago.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4415/25 (Feb 9 High/ daily R1), above which 1.4547/66 (Feb 8 High/ 50-DMA) would be tested. On the flip side, support is seen at 1.4468/51 (10-DMA/ daily low) below which it could extend losses to towards 1.4400 (round number).
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