GBP/USD Forecast: poised to extend its decline
|The first batch of UK data is out, and the GBP/USD pair barely reacted to the news, holding around the 1.2975 level and after having fell down to 1.2951 a fresh weekly low. UK's Industrial Production rose by more than expected in June, up by 0.5% MoM and 0.3% YoY, but manufacturing lagged, flat on the month and up by 0.6% when compared to a year earlier, these lasts, matching market's expectations. A separated report showed that the trade deficit widened in June, by £2.0 billion to £4.6 billion.
Still pending of release in the kingdom is the NIESR GDP estimate for the three months to June expected at 0.3%. While attention during the US session will center on July's PPI figures.
The pair is poised to extend its decline, given that in the 4 hours chart, the price has extended further below a bearish 20 SMA, currently at 1.3010, while technical indicators faltered on an early approach to their mid-lines and resumed their declines. A break below 1.2950 should lead to an extension down to 1.2910, with additional slides targeting 1.2870.Above 1.3010 the bearish pressure will likely ease, but selling interest will likely resurge should the pair approach to the 1.3050/60 price zone.
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