GBP/USD: Upside Capped by 1.4560, Awaits UK Data

GBP/USD: Upside Capped by 1.4560, Awaits UK Data

8 June 2016, 07:37
Roberto Jacobs

GBP/USD: Upside Capped by 1.4560, Awaits UK Data

The bears are seen guarding 1.4560 fencing, as the GBP/USD pair fails every attempt to extend the upside beyond the last, despite improving risk sentiment.

GBP/USD trades above 20-DMA at 1.4540

Currently, GBP/USD now trades +0.06% higher at 1.4552, having found good support at 20-DMA. The cable takes a breather from yesterday’s volatile session, now trading around a flat-line as markets await the UK industrial and manufacturing production data due later in the upcoming session for fresh impetus.

The UK manufacturing output is expected to remain unchanged from March, when it edged higher by 0.1%. Overall industrial output probably is seen staying at the previous month's level, after climbing 0.3% in March from February.

The major remains supported on the back of broad based US dollar weakness and upbeat Chinese trade data, which showed exports matching the estimated drop and imports witnessing a lesser than expected decline.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4600 (round number), above which 1.4658 (Jun 7 high) would be tested. On the flip side, support is seen at 1.4489 (5-DMA) below that at 1.4468 (50-DMA).


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