9 May 2014
GBP/USD testing support at 1.6900
FXStreet (Edinburgh) - The sterling is now challenging session lows, dragging the GBP/USD to challenge the key support at 1.6900 the figure after the release of UK data.
GBP/USD lower on data
Spot is trading on the back footing now after a mixed bag of economic indicators from the UK economy: the total trade deficit shrunk to £1.284 billion during April vs. March’s £1.713 billion while Industrial Production contracted 0.1% inter-month and Manufacturing Production expanded at a monthly pace of 0.5%. “UK trade and manufacturing numbers offer more support to those looking for earlier BoE rate hikes and stronger sterling… all in all these reports are consistent with the UK economy gaining momentum and imply upside risk to our 3% GDP growth forecast for 2014”, observed James Knightley Analyst at ING Bank.
GBP/USD levels to watch
As of writing the pair is down 0.14% at 1.6908 with the next support at 1.6900 (psychological level) ahead of 1.6894 (10-d MA) and finally 1.6866 (low May 7). On the flip side, a breakout of 1.6975 (high May 8) would open the door to 1.6986 (high May 7) and then 1.6997 (2014 high May 6).
GBP/USD lower on data
Spot is trading on the back footing now after a mixed bag of economic indicators from the UK economy: the total trade deficit shrunk to £1.284 billion during April vs. March’s £1.713 billion while Industrial Production contracted 0.1% inter-month and Manufacturing Production expanded at a monthly pace of 0.5%. “UK trade and manufacturing numbers offer more support to those looking for earlier BoE rate hikes and stronger sterling… all in all these reports are consistent with the UK economy gaining momentum and imply upside risk to our 3% GDP growth forecast for 2014”, observed James Knightley Analyst at ING Bank.
GBP/USD levels to watch
As of writing the pair is down 0.14% at 1.6908 with the next support at 1.6900 (psychological level) ahead of 1.6894 (10-d MA) and finally 1.6866 (low May 7). On the flip side, a breakout of 1.6975 (high May 8) would open the door to 1.6986 (high May 7) and then 1.6997 (2014 high May 6).