GBP/USD testing 1.2600 on poor UK data
The selling pressure is now gathering traction around the British Pound, dragging GBP/USD to test the 1.2600 neighbourhood.
GBP/USD offered post-data
Sellers have quickly stepped in today after UK’s Industrial Production and Manufacturing Production have missed expectations during November, contracting at a monthly 1.3% and 0.9%, respectively.
Previously, house prices tracked by Halifax rose 0.2% inter-month in November and 6.0% on a yearly basis.
Spot has thus come further south, extending the daily leg lower and challenging the key support at 1.2600 the figure ahead of the release of the NIESR GDP Estimate, expected later in the European evening.
Across the pond, Mortgage Applications and JOLTs Job Openings are only due ahead of the EIA’s report on crude inventories.
Further downside pressure looms from the positioning side as well, as speculative net shorts have climbed to 2-week highs during the week ended on November 29, according to the latest CFTC report.
GBP/USD levels to consider
As of writing the pair is retreating 0.53% at 1.2612 and a break below 1.2590 (low Dec.7) would open the door to 1.2519 (20-day sma) and then 1.2493 (55-day sma). On the flip side, the next resistance lines up at 1.2776 (high Dec.6) followed by 1.2790 (100-day sma) followed by 1.2862 (high Oct.4).
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.
