Key Highlights
- The British Pound recovered well from 1.3030, but faced strong offers near 1.3300 against the US Dollar.
- A key bearish trend line with current resistance at 1.3260 on the 4-hours chart of GBP/USD is acting as a barrier.
- The US Industrial Production in Sep 2017 posted a 0.3% rise, more than the +0.2% forecast.
- Today in the UK, the Claimant Count Change for Sep 2017 will be released, which is forecasted to register 1.0K.
GBPUSD Technical Analysis
The British Pound corrected sharply from the 1.3030 level against the US Dollar. However, the GBP/USD pair is struggling to settle above 1.3300 and remains at a risk of more declines.
The pair recently failed to break the 100 simple moving average near 1.3330 (4-hour, red) and started a downside move. It also failed near a key bearish trend line with current resistance at 1.3260 on the 4-hours chart.
Sellers succeeded in pushing the pair below the 50% Fib retracement level of the last wave from the 1.3027 low to 1.3337 high.
Therefore, there are chances of further losses in GBP/USD as long as the pair is below the 1.3300 resistance.
US Industrial Production
Recently in the US, the Industrial Production for Sep 2017 was released by the Board of Governors of the Federal Reserve. The forecast was slated for a 0.2% rise compared with the previous month.
The actual result was better the forecast, as there was an increase of 0.3% in the production in Sep 2017. It was way above the last revised decline of 0.7%.
The report stated:
For the third quarter as a whole, industrial production fell 1.5 percent at an annual rate; excluding the effects of the hurricanes, the index would have risen at least 1/2 percent. Manufacturing output edged up 0.1 percent in September but fell 2.2 percent at an annual rate in the third quarter.
The GBP/USD was pressured after the release and is currently at risk of more losses below 1.3240.
Economic Releases to Watch Today
- UK Claimant Count Change Sep 2017 – Forecast 1K, versus -2.8K previous.
- UK ILO Unemployment Rate August 2017 (3M) – Forecast 4.3%, versus 4.3% previous.
- UK Average Earnings Including Bonus August 2017 (3Mo/Year) – Forecast +2.1%, versus +2.1% previous.
- UK Average Earnings Excluding Bonus August 2017 (3Mo/Year) – Forecast +2.0%, versus +2.1% previous.
- US Housing Starts Sep 2017 (MoM) – Forecast 1.175M, versus 1.180M previous.
- US Building Permits Sep 2017 (MoM) – Forecast 1.25M, versus 1.30M previous.
