EUR/GBP fades a spike to 0.7790, quickly reversing gains post downbeat UK industrial output data.
- UK's total industrial production in December dropped by 1.1%; it's lowest output level since September 2012, while the manufacturing production, also missed estimates, falling 0.2% m/m.
- Markets already priced-in a weak print, focus now on Yellen's testimony due later in the NY session.
- Immediate resistance for the pair lies at 0.7850 (Feb 9th highs), while support on the downside lies at 0.7745 (5-DMA).
- Further bullishness can be seen only on breaks above strong trendline resistance currently at 0.7860, tests of 0.79 and then 0.8040 levels likely.
