GBP/USD analysis: at risk of extending its slide
GBP/USD Current price: 1.3525
- UK data confirm resilient economic conditions through 2017.
- GBP/USD at risk of breaching for good the 1.3500 threshold.
Plenty of UK data hit the wires this Wednesday, but the Pound fell short of benefiting from generally optimistic macroeconomic figures. According to the official releases, industrial and manufacturing output remained strong in November, both up 0.4% in the month, beating expectations of 0.3%. Yearly basis, output improved 2.5% and 3.5% respectively, also well above market's expectations. The NIESR GDP estimate for the three months to December resulted at 0.6%, beating expectations and suggesting that the UK economy expanded by 1.8% in 2017. On a negative note, the trade deficit widened by more than expected in November, although the total UK trade deficit narrowed by £2.1 billion to £6.2 billion in the three months to November 2017. The pair jumped up to 1.3561 with dollar's sell-off, but slowly retreated in the US afternoon to settle a handful of pips above the 1.3500 threshold, heading into the Asian opening with a moderate bearish potential, as in the 4 hours chart, the price was unable to surpass a marginally bearish 20 SMA, as technical indicators turn lower from around their mid-lines, with the momentum downward still limited. Anyway, renewed selling interest pushing the pair below the daily low, could lead to an approach to the 1.3400 region.
Support levels: 1.3480 1.3445 1.3410
Resistance levels: 1.3545 1.3590 1.3615
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
