GBP/USD clings to gains, just below mid-1.2200s post-UK macro data
|- The prevalent USD selling bias helped regain some positive traction on Thursday.
- The UK economy contracted by 0.1% in August as against a flat reading expected.
- Manufacturing/industrial production figures also fell short of consensus estimates.
The GBP/USD pair maintained its bid tone through the early European session on Thursday, albeit eased a bit from session tops in reaction to mixed UK macro data.
Having shown some resilience below the 1.2200 round-figure mark for the third straight session, the pair managed to regain positive traction on Thursday and was being supported by the prevalent US Dollar selling bias.
Softer UK macro data does little to influence
The positive momentum, however, lacked any strong follow-through and met with some fresh supply after the UK monthly GDP report showed that the economy unexpectedly contracted by 0.1% in August.
Adding to this, the UK manufacturing and industrial production contracted more-than-expected in August, though was partly offset by slightly lower-than-expected trade deficit figures for the same month.
It will now be interesting to see if the pair is able to capitalize on the positive move or once again fizzles out at higher levels amid persistent uncertainties surrounding Britain's exit from the European Union.
Technical levels to watch
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.