For the 24 hours to 23:00 GMT, the GBP declined 1.01% against the USD and closed at 1.2955, after Britain’s economy stagnated in the last quarter of 2019. Data showed that UK’s gross domestic product (GDP) remained flat on a quarterly basis in 4Q19, amid Brexit uncertainty and compared to a revised rise of 0.5% in the previous quarter. Moreover, industrial production fell 1.8% on a yearly basis in December, compared to a revised drop of 2.5% in the previous month. Additionally, manufacturing production declined 2.5% on an annual basis in December, compared to a revised decline of 3.3% in the earlier month. Meanwhile, UK’s total trade surplus widened to £7.7 billion in December, following a revised surplus of £1.8 billion in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.2960, with the GBP trading marginally higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2914, and a fall through could take it to the next support level of 1.2867. The pair is expected to find its first resistance at 1.2988, and a rise through could take it to the next resistance level of 1.3015.
With no macroeconomic releases scheduled in Britain today, investor sentiment would be governed by global macroeconomic events.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
