For the 24 hours to 23:00 GMT, the GBP declined 0.88% against the USD and closed at 1.2034 on Friday, after the British economy contracted for the first time since 2012 in the second quarter.
In economic news, UK’s gross domestic product (GDP) fell 0.2% on a quarterly basis in 2Q 2019, contracting for the first time in seven years. In the prior quarter, the GDP recorded a rise of 0.5%. Britain’s industrial production dropped 0.1% on a monthly basis in June, higher than market expectations for a fall of 0.2%. In the prior month, industrial production had registered a revised climb of 1.2%. Moreover, the manufacturing production declined 0.2% on a monthly basis in June, undershooting market anticipations for a fall of 0.3%. In the prior month, manufacturing production had recorded an advance of 1.4%. Meanwhile, UK recorded a total trade surplus of £1.8 billion, compared to a revised deficit of £2.0 billion in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.2040, with the GBP trading 0.06% higher against the USD from Friday’s close.
The pair is expected to find support at 1.1988, and a fall through could take it to the next support level of 1.1937. The pair is expected to find its first resistance at 1.2119, and a rise through could take it to the next resistance level of 1.2198.
Amid lack of macroeconomic releases in UK today, traders would keep an eye on the global macroeconomic releases for further directions.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
