GBP/USD regains poise after horrible US data

A sharper-than-expected contraction in the US industrial production is boding well for GBP/USD, which is back above hourly 200-MA level of 1.4162 following the data release.

Supported by 38.2% Fibo

The pair slumped to near 1.4154 (38.2% of 1.4669-1.3835) ahead of the release, before regaining poise after the data in the US showed industrial production in March fell 0.6%, which was way bigger contraction than the 0.1% drop expected by markets. February figure was revised lower to -0.6% as well from -0.5%.

The spot is now trading around 1.4175 levels. Pair clocked a high of 1.4204 in early US session before deflating to 1.4154 levels ahead of the data release.

GBP/USD Technical Levels

The immediate hurdle is noted at 1.4208 (hourly 100-MA) would expose 1.4252 (50% of 1.4669-1.3835). A violation there could yield 1.43 levels. Conversely, failure to sustain above 1.4162 (hourly 200-MA) would shift risk in favor of a drop to 1.41. Next major support is seen at 1.4079 (Jan 21 low).