9 Jul 2013
GBP/USD offered and resuming downside
FXstreet.com (London) - GBP/USD has dropped to break support at 1.4930 after the release of very poor UK data.
UK data came in as Industrial Production yoy 12.3%vrs -1.5% consensus. Then Manufacturing Production yoy -2.9 vrs -1.6% consensus. Trade Balance, non EU disappointed by over £500m and Goods Trade Balance was £20m wider than consensus. GBP/USD now looks to the figure again and a break below would target the post NFP’s lows.
GBP/USD resuming downside
Karen Jones, chief analyst at Commerzbank, noted that GBP/USD bounced from support at 1.4854/32, the 61.8% retracement of the 2009 move higher and the March low on some profit taking. She suspects that intraday rallies will struggle to clear the May lows at 1.5015 and the accelerated downtrend at 1.5175 should remain capped by 1.5300/25. She said while capped here, the market will remain directly offered. “Please note there is very little support between 1.4832 and the 1.4229 2010 low.”
UK data came in as Industrial Production yoy 12.3%vrs -1.5% consensus. Then Manufacturing Production yoy -2.9 vrs -1.6% consensus. Trade Balance, non EU disappointed by over £500m and Goods Trade Balance was £20m wider than consensus. GBP/USD now looks to the figure again and a break below would target the post NFP’s lows.
GBP/USD resuming downside
Karen Jones, chief analyst at Commerzbank, noted that GBP/USD bounced from support at 1.4854/32, the 61.8% retracement of the 2009 move higher and the March low on some profit taking. She suspects that intraday rallies will struggle to clear the May lows at 1.5015 and the accelerated downtrend at 1.5175 should remain capped by 1.5300/25. She said while capped here, the market will remain directly offered. “Please note there is very little support between 1.4832 and the 1.4229 2010 low.”