GBP/USD clings to gains, just below mid-1.2200s post-UK macro data

The prevalent USD selling bias helped regain some positive traction on Thursday.
The UK economy contracted by 0.1% in August as against a flat reading expected.
Manufacturing/industrial production figures also fell short of consensus estimates.

Haresh Menghani FXStreet

The GBP/USD pair maintained its bid tone through the early European session on Thursday, albeit eased a bit from session tops in reaction to mixed UK macro data.

Having shown some resilience below the 1.2200 round-figure mark for the third straight session, the pair managed to regain positive traction on Thursday and was being supported by the prevalent US Dollar selling bias.

Softer UK macro data does little to influence

The positive momentum, however, lacked any strong follow-through and met with some fresh supply after the UK monthly GDP report showed that the economy unexpectedly contracted by 0.1% in August.

Adding to this, the UK manufacturing and industrial production contracted more-than-expected in August, though was partly offset by slightly lower-than-expected trade deficit figures for the same month.

It will now be interesting to see if the pair is able to capitalize on the positive move or once again fizzles out at higher levels amid persistent uncertainties surrounding Britain's exit from the European Union.

Technical levels to watch

GBP/USD

Overview
Today last price	1.224
Today Daily Change	0.0035
Today Daily Change %	0.29
Today daily open	1.2205

Trends
Daily SMA20	1.2369
Daily SMA50	1.2256
Daily SMA100	1.2415
Daily SMA200	1.2716

Levels
Previous Daily High	1.2292
Previous Daily Low	1.2197
Previous Weekly High	1.2414
Previous Weekly Low	1.2205
Previous Monthly High	1.2583
Previous Monthly Low	1.1958
Daily Fibonacci 38.2%	1.2233
Daily Fibonacci 61.8%	1.2256
Daily Pivot Point S1	1.2171
Daily Pivot Point S2	1.2136
Daily Pivot Point S3	1.2075
Daily Pivot Point R1	1.2266
Daily Pivot Point R2	1.2327
Daily Pivot Point R3	1.2361

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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