GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.58% against the USD and closed at 1.4847, after manufacturing production in the UK declined more than expected in May.
In the UK, manufacturing production slipped at an annual rate of 2.9% in May, more than the expected 1.6% decline. Adding to the dismal news, the monthly industrial production came in flat in May, against the expected 0.2% rise. Separately, trade deficit in the UK widened to £8.5 billion in May, from a deficit of £8.4 billion in April. On the other hand, the National Institute of Economic and Social Research reported a 0.6% rise in the UK’s gross domestic product in the three months ending in June, compared to a similar growth in the three months ending in May.
In the Asian session, at GMT0300, the pair is trading at 1.4869, with the GBP trading 0.15% higher from yesterday’s close.
The pair is expected to find support at 1.4794, and a fall through could take it to the next support level of 1.4719. The pair is expected to find its first resistance at 1.4963, and a rise through could take it to the next resistance level of 1.5057.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
