GBP/USD: Pound the worst performer as data fails to convince
GBP/USD Current price: 1.3310
- UK data mixed, discouraging underlying readings.
- US markets to be closed on holidays, USD to suffer anyway.
The British Pound is the worst performer against the greenback this Thursday, retreating from a daily high of 1.3336, and barely holding afloat daily basis. The GBP/USD pair fell to 1.3283 after the release of mixed UK data early Europe. The second estimate of the UK Q3 GDP remained unchanged at 0.4% for the quarter and at 1.5% yearly basis, but Business investment in the same period slowed up just by 0.2% against the previous 0.5% or the expected 0.4%. Realized sales, according to CBI reverted in October the awful September -36%, and resulted at +26%. Reading between the lines, the report was not that positive as it also indicated that retailers are laying off staff.
Broad dollar's weakness helped the pair bounce to regain the 1.3300 level, maintaining, therefore, a short-term positive stance. Technical readings in the 4 hours chart support the bullish case, as the pair is developing well above a bullish 20 SMA and in the upper half of a daily ascendant channel. Indicators have lost upward strength but hold within positive territory. The daily high, which is also October 13th high is a critical resistance as beyond the level, the rally could extend up to the 1.3400 region, although probably not today, as thin market conditions are expected with the US on holidays. Below the mentioned daily low, on the other hand, the short-term risk will turn towards the downside.
Support levels: 1.3260 1.3220 1.3185
Resistance levels: 1.3335 1.3380 1.3410
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.
