GBP/USD: defying lows despite soft US employment data

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2427

View Live Chart for the GBP/USD

The GBP/USD pair jumped to 1.2450 from a fresh weekly low of 1.2411, reached earlier on the day on poor UK data. In February, manufacturing production fell by 0.1, monthly basis, ending up 3.3% when compared to a year earlier, while industrial production fell by 0.7% in the month, against expectations of a 0.2% advance. Also, the deficit on trade in goods and services widened to £3.7 billion in February from a revised deficit of £3.0 billion in January. Finally the NIESR GDP estimate for the three months to March showed that the economy grew at a softer pace, printing 0.5%. The pair was unable to sustain its advance, and retreated back towards its daily low, and the short term technical picture favors a new leg lower, given that in the 1 hour chart, the price is below a bearish 20 SMA, whilst technical indicators have barely lost their bearish momentum within negative territory. In the 4 hours chart, the pair seems poised to extend its decline, as its also developing below its 20 SMA, whilst the RSI gains downward strength around 37.

Support levels: 1.2410 1.2370 1.2330

Resistance levels: 1.2450 1.2500 1.2540

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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