GBP/USD analysis: at risk of extending its slide
|GBP/USD Current price: 1.3525
- UK data confirm resilient economic conditions through 2017.
- GBP/USD at risk of breaching for good the 1.3500 threshold.
Plenty of UK data hit the wires this Wednesday, but the Pound fell short of benefiting from generally optimistic macroeconomic figures. According to the official releases, industrial and manufacturing output remained strong in November, both up 0.4% in the month, beating expectations of 0.3%. Yearly basis, output improved 2.5% and 3.5% respectively, also well above market's expectations. The NIESR GDP estimate for the three months to December resulted at 0.6%, beating expectations and suggesting that the UK economy expanded by 1.8% in 2017. On a negative note, the trade deficit widened by more than expected in November, although the total UK trade deficit narrowed by £2.1 billion to £6.2 billion in the three months to November 2017. The pair jumped up to 1.3561 with dollar's sell-off, but slowly retreated in the US afternoon to settle a handful of pips above the 1.3500 threshold, heading into the Asian opening with a moderate bearish potential, as in the 4 hours chart, the price was unable to surpass a marginally bearish 20 SMA, as technical indicators turn lower from around their mid-lines, with the momentum downward still limited. Anyway, renewed selling interest pushing the pair below the daily low, could lead to an approach to the 1.3400 region.
Support levels: 1.3480 1.3445 1.3410
Resistance levels: 1.3545 1.3590 1.3615
View Live Chart for the GBP/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.