GBP/USD drops to lows near 1.2100 post-UK data
|The Sterling lost further ground following today’s releases in the UK docket, with GBP/USD hovering over the key support at 1.2100 the figure.
GBP/USD now looks to Carney
Spot met extra selling pressure after both Manufacturing Production and Industrial Production have surpassed expectations in November, expanding at a monthly1.3% and 2.1%, respectively.
Further results saw the trade deficit has widened to £12.1 billion during the same period while Construction Output has contracted 0.2% inter-month in November.
Later in the session, GBP will remain under the microscope in light of the speech by Governor M.Carney under the BoE’s Financial Stability Report.
In the US, the press conference by president-elect Donald Trump will grab all the attention in the European evening.
GBP/USD levels to consider
As of writing the pair is retreating 0.48% at 1.2117 and a break below 1.2104 (low Jan.10) would open the door to 1.2081 (low Oct.28) and then 1.1450 (GBP ‘flash crash’ Oct.7). On the upside, the initial hurdle lines up at 1.2302 (20-day sma) followed by 1.2414 (55-day sma) and finally 1.2431 (high Jan.6).
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