GBP/USD: defying lows despite soft US employment data
|GBP/USD Current price: 1.2427
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The GBP/USD pair jumped to 1.2450 from a fresh weekly low of 1.2411, reached earlier on the day on poor UK data. In February, manufacturing production fell by 0.1, monthly basis, ending up 3.3% when compared to a year earlier, while industrial production fell by 0.7% in the month, against expectations of a 0.2% advance. Also, the deficit on trade in goods and services widened to £3.7 billion in February from a revised deficit of £3.0 billion in January. Finally the NIESR GDP estimate for the three months to March showed that the economy grew at a softer pace, printing 0.5%. The pair was unable to sustain its advance, and retreated back towards its daily low, and the short term technical picture favors a new leg lower, given that in the 1 hour chart, the price is below a bearish 20 SMA, whilst technical indicators have barely lost their bearish momentum within negative territory. In the 4 hours chart, the pair seems poised to extend its decline, as its also developing below its 20 SMA, whilst the RSI gains downward strength around 37.
Support levels: 1.2410 1.2370 1.2330
Resistance levels: 1.2450 1.2500 1.2540
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