GBP/USD slides after UK Factory Output Decelerates

FXStreet (Mumbai) - The cable erased gains and slipped into red on less than forecast UK manufacturing and industrial activity data prints.

Currently, the GBP/USD pair trades at 1.5648 levels marginally lower from the previous session’s close of 1.5653. The pair slid after industrial and manufacturing output data from the UK fell way below estimates.

The UK Office for National Statistics reported that the industrial output edged down 0.1% against expectations of a rise of 0.2% between September and October. Manufacturing was the biggest contributor with a fall of 0.7%, also against predictions of a rise of 0.2%. The drop is the lowest fall in manufacturing since May of this year when it fell 1.4%.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5697 (Dec 5 High) levels, above which gains could be extended to 1.5719 (Dec 3 High) levels. On the flip side, support is seen at 1.5618 (50-day SMA), below which it could extend losses to 1.5585 (Dec 1 Low) levels.

UK Industrial Production declines with contraction in the manufacturing activity.

The UK Office for National Statistics data on Industrial Production released today showed the activity expanded at a pace of 1.1% year-on-year in October, lower than the market expectation of 1.8% growth, and down from the September’s growth of 1.5%.
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