GBP/USD Approaches 1.2500, Weighed By Gloomy UK Data
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The Sterling is giving away previous gains on Wednesday, as a string of downbeat UK macroeconomic releases have boosted concerns about the country’s economic outlook.
National Statistics data has revealed that the UK economy contracted at 0.3% in October, well beyond the -0.1% expected, and following a 0.2% growth in September.
Beyond that, manufacturing production dropped 1.1%, against market expectations of a flat performance, driving industrial output 0.8% down instead of the 0.1% decline forecasted by the experts.
Weak UK data poses a challenge to the BoE
These figures offset the positive impact after Tuesday’s strong employment report and pose a headache for the BoE ahead of Thursday’s monetary policy decision.
Later today, the Fed is expected to leave its benchmark rate unchanged at the 5.25% - 5.5% band. The market will be attentive to the dot plot and Chairman Powell’s comments about the bank’s next policy steps, which might boost USD volatility.
Technical levels to watch
GBP/USD
| OVERVIEW | |
|---|---|
| Today last price | 1.2522 |
| Today Daily Change | -0.0048 |
| Today Daily Change % | -0.38 |
| Today daily open | 1.257 |
| TRENDS | |
|---|---|
| Daily SMA20 | 1.2568 |
| Daily SMA50 | 1.2358 |
| Daily SMA100 | 1.2458 |
| Daily SMA200 | 1.2492 |
| LEVELS | |
|---|---|
| Previous Daily High | 1.2616 |
| Previous Daily Low | 1.2514 |
| Previous Weekly High | 1.2724 |
| Previous Weekly Low | 1.2502 |
| Previous Monthly High | 1.2733 |
| Previous Monthly Low | 1.2096 |
| Daily Fibonacci 38.2% | 1.2577 |
| Daily Fibonacci 61.8% | 1.2553 |
| Daily Pivot Point S1 | 1.2517 |
| Daily Pivot Point S2 | 1.2465 |
| Daily Pivot Point S3 | 1.2416 |
| Daily Pivot Point R1 | 1.2619 |
| Daily Pivot Point R2 | 1.2668 |
| Daily Pivot Point R3 | 1.272 |
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