GBP/USD: consolidating, but downside still favored
|GBP/USD Current price: 1.2996
The GBP/USD pair keeps consolidating just below the 1.3000 level, after the release of mixed UK data that failed to trigger some interesting moves. In fact, data was mostly worrisome, as despite a cheaper Pound, the pick un in manufacturing and industrial production was for the most, shallow. UK's Industrial Production rose by more than expected in June, up by 0.5% MoM and 0.3% YoY, but manufacturing remained flat on the month, advancing by 0.6% when compared to a year earlier, these lasts, matching market's expectations. Additionally, the UK released its trade balance figures for the same month, which showed that the trade deficit widened by £2.0 billion to £4.6 billion. Ahead of the release of the NSIER GDP estimate, the pair topped for the day at 1.3014 during Asian hours, and bottomed at 1.2951 ahead of the afore mentioned releases. The technical bias continues favoring the downside, however, as intraday advances have met selling interest around the 4 hours chart 20 SMA that retains its bearish slope, although technical indicators in the mentioned time frame lack clear directional strength within bearish territory, with the Momentum flat and the RSI barely turning lower. Below 1.2950, the downside potential increase, with room them for a steady slide towards the 1.2870 region.
Support levels: 1.2950 1.2910 1.2870
Resistance levels: 1.3010 1.3050 1.3090
View Live Chart for the GBP/USD
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