FxWirePro: GBP/USD trades lower on weak UK manufacturing production, good to buy on dips
GBP/USD has declined almost 100 pips for the day after weaker than expected UK manufacturing production data. UK manufacturing production data came at -1.4.% for the month of May compared to forecast of 0.3%. The weak UK…
GBP/USD has declined almost 100 pips for the day after weaker than expected UK manufacturing production data. UK manufacturing production data came at -1.4.% for the month of May compared to forecast of 0.3%. The weak UK economic data shows that chance of rat hike by BOE is less. It hits low of 1.33449 and is currently trading around 1.33845.
The pair recovered sharply from low of 1.32043 made on May 29th 2018 and jumped nearly 200 pips from its low. The near term resistance is around 1.3390 (20- day MA) any break above will take the pair to next level till 1.3460 (trend line resistance)/ 1.3516 (34- day EMA)/1.3590. Short term trend is still weak as long as resistance 1.3620 holds. Any break above 1.3620 will take the pair till 1.3680/1.3760.
The major support is around 1.3300 and any break below will drag the pair down till 1.3230/1.3200.
It is good to buy on dips around 1.3300 with SL around 1.3245 for the TP of 1.3415/1.3460.
