GBP/USD Drops Further on UK Data, 1.4400 Eyed

GBP/USD Drops Further on UK Data, 1.4400 Eyed

11 May 2016, 11:06
Roberto Jacobs
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GBP/USD Drops Further on UK Data, 1.4400 Eyed

The GBP/USD pair ran through fresh offers following the release of below estimates UK industrial production data, which weighed heavily on the British pound.

GBP/USD slips below 5-DMA at 1.4427

The GBP/USD pair trades -0.21% lower at fresh session lows of 1.4413, unable to hold the upside around 1.4450 levels. Having breached 1.4440 support, the cable extended to the downside, with the dismal UK industrial figures, exacerbating the pain in the pound.

Total industrial production picked up to 0.3% m/m from a fall of 0.2% a month before, but less than expected. While the manufacturing production in the UK rebounded 0.1% in March from a decline of 0.9% a month before, although missed estimates of a 0.4% increase.

Meanwhile, markets will continue to assess the UK data in absence of key economic data lined up for release later today. While the main risk event for the UK economy remains the BOE monetary policy decision and accompanying minutes due tomorrow.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4495/1.4500 (10-DMA/ round number), above which 1.4550 (1h 200-SMA) would be tested. On the flip side, support is seen at 1.4400 (round number) below that at 1.4353/50 (100-DMA/ psychological levels).


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