FxWirePro: GBP/USD trades lower on weak UK manufacturing production data, good to sell on rallies
Cable has shown a decline more than 100 pips till 1.37800 yesterday from the high of 1.39098. The pair shown a minor recovery today morning but weaker than expected UK data has dragged the pair down from the intraday hig…
Cable has shown a decline more than 100 pips till 1.37800 yesterday from the high of 1.39098. The pair shown a minor recovery today morning but weaker than expected UK data has dragged the pair down from the intraday high of 1.38309 and is currently trading around 1.38081.
USD gained strength against all majors after dovish ECB meeting. UK manufacturing output rose 0.1% MOM against forecast of 0.2%. UK trade deficit widens in Jan and misses estimate. Market eyes US non-farm payroll data for further direction. Wage growth is the major data to be watched in jobs data and any data above 3% will be more positive for USD.
Technically on the lower side, near term support is around 1.37600 and any break below will drag the pair down till 1.3700/1.3650.
The near term resistance is around 1.3860 (support turned into resistance) and break above will take the pair till 1.3920/1.965/1.4000. The pair should break above 1.4070 for further upside.
It is good to sell on rallies around 1.3855-60 with SL around 1.3920 for the TP of 1.3760/1.3700.
