GBPUSD Movement
On Friday, GBP fell marginally against the USD and closed at 1.6474, as traders refrained from taking major bets in the Pound, following the latest batch of downbeat economic releases from the UK economy. Data revealed that industrial production in the UK rose 2.5% (YoY) in November, less-than analysts’ estimate for a rise of 3.0%, and compared to a 3.2% increase seen in the preceding month. Similarly, manufacturing production in the UK also rose less than market expectations, by 2.8% (YoY) in November, following a 2.6% rise registered in October. Separately, the National Institute of Economic and Social Research (NIESR)’s reported that UK’s Gross Domestic Product (GDP) rose by an estimated 0.7% in the three months ending to December, compared to a 0.8% gain reported in the corresponding period for November.
In the Asian session, at GMT0400, the pair is trading at 1.6504, with the GBP trading 0.18% higher from Friday’s close.
The pair is expected to find support at 1.6418, and a fall through could take it to the next support level of 1.6331. The pair is expected to find its first resistance at 1.6555, and a rise through could take it to the next resistance level of 1.6605.
Market participants are expected to keep a close watch on global economic news, for further cues in the pair, amid a lack of economic releases from the UK.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
