7 Feb 2014
GBP/USD shrugs off disappointing UK data
FXStreet (Córdoba) - The GBP/USD briefly dipped to fresh lows at the 1.6300 area after both UK industrial production and manufacturing production for December came in below expectations.
UK industrial production rose 0.4% in December while manufacturing production grew 0.3% both missing forecast of 0.6% increase. The GBP/USD fell nearly 50 pips in a matter of minutes and hit a low of 1.6300, although UK trade data helped to offset the move. The GBP/USD has bounced back to the 1.6340 zone, where it is posting a 0.1% gain on the day.
GBP/USD levels to watch
In terms of technical levels, the GBP/USD could find immediate resistances at 1.6357 (Feb 7 high), 1.6400 (psychological level) and 1.6440 (20-day SMA). On the other hand, supports are seen at 1.6300 (psychological level), 1.6272 (Feb 6 low) and 1.6248 (100-day SMA).
UK industrial production rose 0.4% in December while manufacturing production grew 0.3% both missing forecast of 0.6% increase. The GBP/USD fell nearly 50 pips in a matter of minutes and hit a low of 1.6300, although UK trade data helped to offset the move. The GBP/USD has bounced back to the 1.6340 zone, where it is posting a 0.1% gain on the day.
GBP/USD levels to watch
In terms of technical levels, the GBP/USD could find immediate resistances at 1.6357 (Feb 7 high), 1.6400 (psychological level) and 1.6440 (20-day SMA). On the other hand, supports are seen at 1.6300 (psychological level), 1.6272 (Feb 6 low) and 1.6248 (100-day SMA).