Cable accelerated lower from session high at 1.3301 and fell over 50 pips after UK data disappointed.
UK industrial output unexpectedly fell by 0.4% in May vs forecasted +0.5%, GDP came in line with expectations (0.3%) while Manufacturing production rose 1.1% in May, undershooting forecast for 1.9% rise.
Weaker than expected data further soured the sentiment, already dented by resignation of two ministers and increasing concerns about hard Brexit, as political turmoil in the UK is expected to further impact sterling.
The pair returned to initial range between 20SMA (1.3223) and 30SMA (1.3269) as pre-data upside attempts cracked 1.33 barrier but failed to sustain break.
Slow stochastic on daily chart is heading south after reversal from overbought territory and produces pressure which could increase as 14-d momentum is turning lower.
However, strong direction signal is still required and could be generated on firm break below 10SMA at 1.3196 (bearish) of sustained lift above 1.33 handle (bullish).
Res: 1.3260, 1.3301, 1.3362, 1.3400
Sup: 1.3223, 1.3196, 1.3169, 1.3114
