GBP/USD Forecast: downward pressure persists, 1.2000 at sight

The GBP/USD pair maintains the bearish tone after the release of mixed UK data, extending its daily decline to test the weekly low as an immediate reaction to the releases. UK's November manufacturing production jumped by 1.3% when compared to the previous month, and by 1.2% yearly basis, whilst industrial production was up by 2.1% in  the month, and 2.0% YoY, much better than market's forecasts. Released at the same time, the trade balance showed a larger-than-expected deficit,  of £12.163B.

Now bouncing from 1.2107, the pair is trading around 1.2120, and technical readings in the 4 hours chart favors a bearish breakout, given that the price has been rejected by a bearish 20 SMA, whilst technical indicators head sharply lower within negative territory, approaching oversold readings.

The pair has scope now to extend towards 1.2080, with large stops expected below it. If those got triggered, the pair will likely extend its decline towards the 1.2000/30 region later on the day. The immediate resistance is 1.2140, with a recovery beyond it favoring an approach to the 1.2200 level, where selling interest is expected to re-surge.

View live chart of the GBP/USD

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