GBP/USD off lows, still in red ahead of UK manufacturing data

The GBP/USD pair failed to build on tepid recovery move from Tuesday's multi-week lows and retreated back to mid-1.2100s.  The pair, however, has managed to bounce off few pips from session low and is currently trading around 1.2165 region ahead of UK manufacturing data. 

Persistent worries of 'hard Brexit' continues to attract fresh selling pressure around the British Pound and spot ran through fresh offers at a previous strong support, now turned immediate resistance, near 1.2200 handle. Moreover, moderate US Dollar strength, as investors await for Donald Trump's scheduled press conference, also collaborated to the pair's weakness on Wednesday. 

Wednesday's UK economic docket, featuring the release of manufacturing and industrial production data, accompanied with Goods Trade Balance for November, would be looked upon for short-term trading opportunities. Investors on Wednesday will also focus on BOE Governor Mark Carney's testimony before the Parliament's Treasury Select Committee, which might provide some fresh impetus for the pair's near-term trajectory.

Technical levels to watch

Immediate support below 1.2150 level is pegged near 1.2135-30 region below which the pair is likely to break below 1.2100 handle and head towards 1.2080-75 support area. On the upside, any recovery momentum above 1.2175-80 resistance might continue to confront strong hurdle near 1.2200 handle, which if cleared decisively might trigger a short-covering bounce towards 1.2280-85 resistance area.

1 Week
Avg Forecast 1.2306
  • 30% Bullish
  • 30% Bearish
  • 40% Sideways
Bias Sideways
1 Month
Avg Forecast 1.2237
  • 27% Bullish
  • 60% Bearish
  • 13% Sideways
Bias Bearish
1 Quarter
Avg Forecast 1.2098
  • 5% Bullish
  • 58% Bearish
  • 37% Sideways
Bias Bearish


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.