12 Jan 2016
GBP/USD in multi-year lows on poor UK data
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).
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).