On Friday, GBP fell 0.49% against the USD and closed at 1.6849, as traders reacted negatively to the recent batch of mixed economic releases from the UK economy and following recent encouraging comments on the US economy by Fed Chief Yellen.
In economic releases, the UK industrial production fell 0.1% (MoM) from February. However, the manufacturing output registered its fastest quarterly pace of growth since the third quarter of 1999 in March. Separately, total trade balance in the UK narrowed to £1.3 billion in March, as exports from the nation increased 4.9% on month in March while imports gained 2.8% (MoM) from February. Meanwhile, the NIESR, in its monthly estimate report, showed that Britain’s GDP rose by 1.0% during the three months ended April. The NIESR also highlighted its expectations for the UK GDP to regain growth and reach its first quarter 2008 level within a short period of time.
In the Asian session, at GMT0300, the pair is trading at 1.6851, with the GBP trading a tad higher from Friday’s close.
The pair is expected to find support at 1.6809, and a fall through could take it to the next support level of 1.6766. The pair is expected to find its first resistance at 1.6917, and a rise through could take it to the next resistance level of 1.6982.
Amid lack of major economic releases in the UK and the US, traders are expected to eye global economic news for further guidance in the currency pair.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.