GBP/USD analysis: manufacturing and industrial production up next

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2158

Brexit-related concerns maintained the Pound under pressure, with the GBP/USD pair extending its slide to a fresh multi-month low of 1.21006 mid London session. There were no fundamental news coming from the UK this Tuesday, but on Wednesday, the kingdom will release its latest Trade Balance data, alongside with manufacturing and industrial production figures, which surprised to the downside in October, and may disappoint again tomorrow. Good results from the mentioned reports will likely do little for the Pound, as the ongoing negative tone is based on political woes, although another round of negative readings will only fuel Pound's slide. The pair advanced up to 1.2189, but quickly retraced and in the 4 hours chart, the risk remains towards the downside, as the 20 SMA has accelerated its slide far above the current level, while the RSI indicator resumed its decline after a modest upward correction from oversold readings. The Momentum indicator in the mentioned chart also stands well below its mid-line, supporting the case of a new leg lower on a break below the 1.2080 region, a strong static support area.

Support levels: 1.2130 1.2085 1.2050

Resistance levels: 1.2200 1.2240 1.2290

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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.

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