6 Sep 2013
GBP/USD test lows on softer UK data
FXstreet.com (Edinburgh) -The selling interest is now sharpening around the sterling, dragging the GBP/USD to test intraday lows below 1.5580 on poor UK data.
GBP/USD weaker on data
The manufacturing and industrial production in the British economy came in on the softer side on Friday, expanding 0.2% and 0.0% on a monthly basis during July, both prints missing the median. Further data showed a wider trade deficit of £9.853 billion vs. June’s deficit of £8.171 billion. Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented, “While above the 1.5508 2 month up channel, we remain unable to rule out further upside probes and only a close below here will negate current upside pressure and allow for a slide back to the 1.5430/24 recent lows and then 1.5104 the August low”.
GBP/USD levels to consider
The pair is now losing 0.06% at 1.5580 and a breakdown of 1.5573 (low Sep.5) would aim for 1.5557 (MA10d) and then 1.5556 (low Sep.4). On the upside, the next resistance lines up at 1.5667 (high Sep.5) followed by 1.5718 (high Aug.21) and finally 1.5753 (high Jun.17).
GBP/USD weaker on data
The manufacturing and industrial production in the British economy came in on the softer side on Friday, expanding 0.2% and 0.0% on a monthly basis during July, both prints missing the median. Further data showed a wider trade deficit of £9.853 billion vs. June’s deficit of £8.171 billion. Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented, “While above the 1.5508 2 month up channel, we remain unable to rule out further upside probes and only a close below here will negate current upside pressure and allow for a slide back to the 1.5430/24 recent lows and then 1.5104 the August low”.
GBP/USD levels to consider
The pair is now losing 0.06% at 1.5580 and a breakdown of 1.5573 (low Sep.5) would aim for 1.5557 (MA10d) and then 1.5556 (low Sep.4). On the upside, the next resistance lines up at 1.5667 (high Sep.5) followed by 1.5718 (high Aug.21) and finally 1.5753 (high Jun.17).