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GBP/USD in multi-year lows on poor UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The sterling is now quickly losing the grip vs. the dollar, sending GBP/USD to breach the key support at 1.4500 the figure.

    GBP/USD vulnerable below 1.4500

    The pair is giving further ground after miserable results from the UK industrial sector during November. In fact, Industrial Production has contracted 0.7% on a monthly basis vs. a forecasted flat reading, while it has expanded at an annual pace of 0.9%. Further data saw Manufacturing Production dropping 0.4% inter-month and 1.2% over the last twelve months.

    Spot has print fresh lows in levels last seen in June 2010 around the 1.4490 area in the wake of the releases, exposing potential further weakness in light of the NIESR GDP Estimate and the speech by BoE Governor Mark Carney.

    GBP/USD important levels

    The pair is now losing 0.36% at 1.4491 and a breakdown of 1.4400 (psychological level) would expose 1.4346 (low Jun.8 2010) and then 1.4229 (2010 low May 20). On the flip side, the next resistance aligns at 1.4947 (high Dec.24) ahead of 1.5015 (55-day sma) and finally 1.5158 (100-day sma).
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