Since the beginning of the month, the very poor period the GBP had endured, with the continuing decline itself against the USD. With today’s price below 1.3000, it has fallen from the USD once again. The continuing negative news from the United Kingdom became the source of this significant fall in the price. Therefore the technical bias remains bearish, due to the higher low wave shown on the graph at the last upside move.
GBP/USD: Technical Analysis
The graph below shows the price of GBPUSD, 1.2977, with the two trendlines of resistance of 1.3120 and 1.3127 respectively just above it, which may not allow the price to pass through it or push it down to the current level. And then soon after these, at 1.3440, the major horizontal resistance stands.
In the graph above, it is interesting to see that price is supported by many support levels which provide the potential lift-up power so that the price can move in the direction ahead. At 1.2850, the price may receive the assistance of major key horizontal support, afterward, there is the support of the Fibonacci level of 1.2628, and then it supported by the trendline support of 1.2625.
UK Industrial Production
Fundamentally, UK Industrial Production showed a 1.2 percent negative reading as it stood at 0.4 percent in the previous month. Changes in industrial production in the manufacturing sector are widely followed as a major strength indicator so the low reading is seen as bearish.
While it is on the bearish track, there is hope from the upcoming news that the price will increase, while now there is a danger of investing in it.