GBP/USD turns negative near 1.4060, UK IP in focus

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The GBP/USD pair is seen surrendering in the European morning, and drifts lower towards daily lows as markets remain wary ahead of the crucial UK industrial and manufacturing output numbers.

    GBP/USD losing sight of 1.41 handle?

    The GBP/USD pair trades almost unchanged at 1.4059, quickly bouncing off fresh session lows struck at 1.4045 last minutes. The cable snapped a minor rebound and turned back into the negative territory as the US dollar regained ground across the board amid renewed hopes of Fed rate hike as early as this June following less dovish Yellen.

    Further, markets are pricing-in a poor industrial production data from the British economy due for release later today, which also explains the renewed selling interest seen in the GBP/USD pair.

    Manufacturing output is expected to have contracted 0.2% from January, when it jumped 0.7%, while the overall industrial output probably rose 0.1% in Feb, against a 0.3% rise previous.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4080/87 (daily high & pivot), above which 1.4130/32 (daily R1/ 5-DMA) would be tested. On the flip side, support is seen at 1.4015/00 (daily S1/ round number) below that at 1.3972/12 (daily S2/ Mar 2 Low).
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