GBP/USD analysis: weighed by soft UK data

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2974

The GBP/USD pair settled at 1.2974, having, however, extended its weekly decline by a few pips to 1.2951 early London session. A bunch of fresh data coming from the UK failed to support the Pound, as it was in-balance negative for the kingdom. For June, Industrial Production posted a modest advance, while Manufacturing Production remained flat, whilst the trade deficit widened by £2.0 billion to £4.6 billion. Also, the NIESR GDP estimate for the three months to July suggests that UK's output grew by 0.2%, below previous and expected 0.3%, with the economy running below its long run trend. Weak US data helped the pair bounce intraday, but remained unable to surpass the 1.3010/20 region, retreating twice from it. In the 4 hours chart, a flat 200 EMA and a bearish 20 SMA converge in the mentioned region, reinforcing the static support, while technical indicators retain the neutral-to-bearish stance, as the Momentum indicator remains directionless below its 100 level whilst the RSI turned south, but holds above previous lows. A break below 1.2950 will likely lead to or a steady slide towards the 1.2870 region, the next relevant static support.

Support levels: 1.2950 1.2910 1.2870

Resistance levels: 1.3015 1.3050 1.3090

View Live Chart for the GBP/USD

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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