- The British Pound is in a downtrend with a close below the 1.3000 handle against the US Dollar.
- There are two bearish trend lines with resistance at 1.2990 forming on the hourly chart of GBP/USD.
- Today in the UK, the Industrial Production for June 2017 was released by the National Statistics.
- The outcome was above the forecast, as there was a rise of 0.3% in the production (YoY).
GBP/USD Technical Analysis
There was an increase in selling pressure on the British Pound, as it moved down from the 1.3100 swing high against the US Dollar.
The GBP/USD pair declined heavily and moved below the 1.3050 and 1.3000 support levels, which is a bearish sign in the near term.
On the upside, there are two bearish trend lines with resistance at 1.2990 forming on the hourly chart of GBP/USD.
GBP/USD Hourly Chart
Recently, the pair broke a connecting bullish trend line at 1.2988 to trade as low as 1.2950.
At the moment, the pair is recovering, and already moved above the 23.6% Fib retracement level of the last decline from the 1.3011 high to 1.2950 low.
The most important resistance is near the trend lines and the 61.8% Fib retracement level of the last decline from the 1.3011 high to 1.2950 low.
Selling rallies as long as the pair is below the 1.3000-1.3020 levels can be considered. On the downside, the last swing low of 1.2950-20 is a decent support for buyers looking to buy on dips.
UK’s Industrial Production
Today in the UK, the Industrial Production for June 2017 was released by the National Statistics. The market was expecting a minor increase of 0.1% compared with the previous month.
The actual result was above the forecast, as there was an increase of 0.5%. In terms of the yearly change, the Industrial Production rose 0.3% whereas the market was expecting a decline of 0.1%.
The report stated that:
The largest contribution to the fall in manufacturing in the 3 months to June 2017 came from transport equipment, which fell by 2.2%, along with smaller downward contributions from a range of other industries.
Overall, the GBP/USD pair may correct higher towards 1.2990 and 1.3000, but further upsides would be difficult.