The GBP/USD pair is trading below the 1.5500 level for the first time since mid June, weighed by the most but Grexit fears sending investors towards the American currency. But the UK data is also pressuring the Pound, as British manufacturing in May fell by much more than any expected dropping by 0.6% after a fall of 0.4% in April. Industrial output, however, rose by 0.4%, above market's expectations, boosted by oil and gas production. The bad figures are being attributed to the recent advance of Pound, as the strength of the currency makes local products more expensive for foreign buyers.
The 4 hours chart shows that the price has approached the 61.8% retracement of its latest bullish run around 1.5475, the immediate intraday support, having been rejected from a strongly bearish 20 SMA earlier on the day. The technical indicators in the mentioned time frame have accelerated lower, and are now approaching oversold levels, but give no signs of turning higher. Should the price extend below the mentioned Fibonacci support, the pair can extend its decline down to the 1.5420/40 region as an immediate reaction, but with scope to retest 1.5200 during the upcoming days.
A recovery above 1.5520 on the other hand, may see the pair returning to the 1.5560 region, where selling interest is expected to cap the upside.
View live chart of the GBP/USD
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