GBP/USD moves higher post-UK data

Industrial/Manufacturing production surprised positively.
Trade deficit narrowed in September.
Cable advances to 1.3170, daily highs.

Pablo Piovano FXStreet

The British Pound keeps the positive fashion at the end of the week, now lifting GBP/USD to fresh tops in the 1.3170 in the wake of positive UK results.

GBP/USD bid after data

GBP reverted the negative start today after UK’s industrial production expanded at a monthly 0.7% and manufacturing production rose 0.7% inter-month during September, both prints coming in above prior surveys.

Further data saw the trade deficit shrinking to £11.25 billion in September, also surprising to the upside. The negative note came in from the construction sector, as construction output contracted at a monthly 1.6%, more than previously forecasted.

In the meantime, Cable managed to regain the positive territory and advance to the vicinity of 1.3170, or daily highs, in the wake of the results. However, the sentiment around GBP remains heavy and under pressure amidst persistent Brexit concerns.

GBP/USD levels to consider

As of writing the pair is up 0.07% at 1.3155 and a breakout of 1.3180 (21-day sma) would expose 1.3216 (55-day sma) and then 1.3242 (resistance line). On the other hand, the immediate support is located at 1.3107 (100-day sma) seconded by 1.3064 (support line) and finally 1.3039 (low Nov.3). Further out, FXStreet’s Technical Confluence Index (TCI) notes a strong resistance area in the mid-1.3100s, where converge a Fibo retracement and 4-hour highs.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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