GBP/USD Defends Mild Gains as Poor UK Data Weighs

GBP/USD Defends Mild Gains as Poor UK Data Weighs

8 April 2016, 13:02
Roberto Jacobs

GBP/USD Defends Mild Gains as Poor UK Data Weighs

The GBP/USD pair continues to consolidate gains below 1.41 handle over the last hours, as markets digest the latest industrial figures from the UK economy.

GBP/USD reverses a spike to 1.4140

The GBP/USD pair trades modestly flat at 1.4067, heading for retest of daily lows reached at 1.4041. The cable jumped one big figure on European open, although failed to sustain at higher levels and reversed more than half of the steep rise following the release of poor UK industrial and manufacturing production data.

The UK manufacturing production dropped to -1.1% from 0.5% in March, while the yearly print also decelerated to -1.8% from -0.3% previously. Moreover, industrial production contracted to -0.3% from 0.2% m/m, with also declining on annualized basis to -0.5% from 0.1%.

However, the downside remains cushioned on the back of the ongoing rally in the oil prices, which keeps the sentiment lifted on the European indices, with the UK’s FTSE rising +0.70% so far this session.

Looking ahead, all eyes remain on FOMC member Dudley’s speech scheduled later in the NY session for fresh updates on the Fed monetary policy outlook. In the meantime, the sentiment on the oil and global stock markets will continue to drive the major.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4100 (round number), above which 1.4132/40 (5-DMA/ daily high) would be tested. On the flip side, support is seen at 1.4015/00 (daily S1/ round number) below that at 1.3972/12 (daily S2/ Mar 2 Low).

(Market News Provided by FXstreet)

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