For the 24 hours to 23:00 GMT, the GBP declined 0.57% against the USD and closed at 1.2858 amid a slew of disappointing economic data.
On the macro front, UK’s preliminary gross domestic product (GDP) growth slowed to a six-year low level of 0.2% on a quarterly basis in 4Q 2018, compared to market expectations for a rise of 0.3%. GDP had recorded a climb of 0.6% in the previous quarter. Moreover, the nation’s manufacturing production eased 2.1% on an annual basis in December, compared to a revised fall of 1.2% in the preceding month. Markets had anticipated manufacturing production to record a fall of 1.1%. Additionally, industrial production declined 0.9% on a yearly basis in December, more than market expectations for a drop of 0.5% and following a revised fall of 1.3% in the prior month. Also, UK’s construction output unexpectedly dropped 2.4% on an annual basis in December, defying market expectations for a rise of 1.5%. Construction output had registered a revised rise of 1.8% in the previous month. Further, visible trade deficit narrowed to £12.10 billion in December, compared to a revised visible trade deficit of £12.40 billion in the prior month.
In the Asian session, at GMT0400, the pair is trading at 1.2864, with the GBP trading 0.05% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2826, and a fall through could take it to the next support level of 1.2789. The pair is expected to find its first resistance at 1.2920, and a rise through could take it to the next resistance level of 1.2977.
With no macroeconomic releases in UK today, investors would look forward to global macroeconomic releases for further directions.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.