GBP/USD: Trump-triggered bounce to be short lived

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2244

The GBP/USD pair bounced from a fresh multi-month low of 1.2037 achieved during the American afternoon, as Trump's press conference triggered a short-term dollar sell-off. At the beginning of the day, data coming from the UK showed that in November 2016, Industrial Production was estimated to have increased by 2.1% compared with October 2016, while yearly basis, the increase was of 2.0%. Manufacturing Production increased by 1.3% in the same month, and by 1.2% when compared to November 2015. The total trade balance, however, posted a larger-than-expected deficit of £4.167B. The pair closed the day with gains after advancing up to 1.2270, now the immediate short term resistance, and in the 4 hours chart, technical readings favor additional advances, as the price is above a bearish 20 SMA whilst technical indicators bounced from oversold readings and maintain their strong bullish slopes within positive territory. Nevertheless, the negative sentiment towards the Pound may likely resume once the dust settles, with renewed declines below the 1.2200 figure denying chances of a firmer recovery.

Support levels: 1.2200 1.2150 1.2110

Resistance levels: 1.2270 1.2310 1.3360

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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