On Wednesday the pound slid versus the U.S. dollar,
re-approaching a five-week low after data indicated that U.K. manufacturing
and industrial production dropped in January.
GBP/USD hit 1.5039 during European morning trade, the session low; the pair subsequently consolidated at 1.5046, shedding 0.16%. The pair was likely to find support at 1.4986, the low of February 3 and resistance at 1.5135, the high of March 9.
The U.K. Office for National Statistics said in a report that manufacturing production declined 0.5% in January, disappointing expectations for an increase of 0.2% and following a 0.1% gain in December.
On an annualized basis, manufacturing production rose at rate of 1.9% in January, below expectations for a gain of 2.6%, after rising at a rate of 2.6% the previous month.
The data also demonstrated that industrial production fell 0.1% in January, compared to expectations for a 0.2% gain, after declining 0.2% in December.
The British currency was higher against the euro, with EUR/GBP declining 0.61% to 0.7057.
The single currency remained fragila after the European Central Bank began purchasing securities on Monday as part of an asset-buying program amounting to €60 billion a month.
Fears over the situation in Greece also pressured the euro, as the eurogroup of finance ministers continued talks in Brussels to discuss a reform package put forward by Greece as part of its bailout review.
In the meantime, the dollar remained supported after the latest U.S. jobs report heigthened expectations for higher interest rates.
