- Cable remains in multi-month in the mid-1.2700s.
- UK’s Q2 GDP matched estimates at 0.4% QoQ.
- UK’s Industrial/manufacturing Production surprised to the upside.
GBP/USD weak on USD-buying, Brexit woes
Cable is down for the ninth session in a row at the end of the week, navigating the mid-1.2700s, or multi-month lows, on heightened concerns over a potential ‘hard Brexit’ outcome and increasing buying interest around the greenback.
GBP remained apathetic after the first revision of UK’s GDP figures expect the economy to expand 0.4% inter-quarter and 1.3% over the last twelve months, matching initial estimates.
On a brighter side, Industrial Production expanded 0.4% MoM in June and Manufacturing Production rose 0.4% MoM. In addition, the trade deficit shrunk to £11.38 billion during the same period, surpassing consensus.
Ahead in the day, US CPI figures for the month of July should be in centre stage along with the omnipresent US-China trade effervescence.
GBP/USD levels to consider
As of writing, the pair is losing 0.57% at 1.2756 and a break below 1.2736 (2018 low Aug.10) would open the door to 1.2637 (low Jun.12 2017) and finally 1.2591 (monthly low Jun.21 2017). On the flip side, the next hurdle lines up at 1.2975 (10-day SMA) followed by 1.3057 (21-day SMA) and then 1.3215 (high Jul.26).
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