Pound Sterling managed to capture capital outflows out of the Euro
|GBP/USD Forecast: Sellers could take action if 1.2500 support fails
After posting small gains on Thursday, GBP/USD turned south and touched its lowest level in four months near 1.2500 in the early European session on Friday. The near-term technical picture shows that the bearish potential remains intact but an extended slide in the EUR/GBP pair could help GBP/USD limit its losses.
Mixed macroeconomic data releases from the US caused the US Dollar (USD) rally to lose steam on Thursday and allowed GBP/USD to edge slightly higher. Additionally, the decline seen in EUR/GBP after the European Central Bank (ECB) policy announcements suggested that Pound Sterling managed to capture capital outflows out of the Euro. Read more...
GBP/USD remains on the defensive below 1.2550 following UK GDP data
The GBP/USD pair remains on the defensive near 1.2530 during the early European trading hours on Friday. The major pair remains vulnerable despite the stronger-than-expected UK monthly GDP numbers and improved Industrial Production data.
The latest data released from the Office for National Statistics on Friday showed that the UK monthly Gross Domestic Product (GDP) grew 0.1% MoM in February, compared to an expansion of 0.3% in the previous reading, matching the estimation of a 0.1% expansion. Additionally, UK Industrial Production for February came in better than the market expectation, improving to 1.1% MoM from a 0.3% decline in January. Finally, the UK Goods Trade Balance arrived at GBP-14.212 billion MoM in February from GBP-14.097 billion prior, better than GBP-14.5B expected. Read more...
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