GBP/USD Resumes Its Fall
LiteForex Europe | Sep 09, 2016 02:45AM ET
On Wednesday the pound fell against the US dollar amid the publication of mixed macroeconomic statistics from the UK and commentaries by Governor of the Bank of England Mark Carney.
UK industrial output gained 0.1% on the month in July while a 0.2% decline was expected. On a year-on-year basis, growth in industrial production accelerated from 1.4% to 2.1%, beating market consensus of 1.9%. At the same time, manufacturing production fell 0.9% in July after a 0.3% decline in June that was worse than expectations for a decrease of 0.5%.
The Bank of England Governor Mark Carney on Wednesday spoke in favor of the recent decision to cut interest rates noting that actions taken by the central bank have had a positive impact on the country’s economy.
Bollinger Bands on the daily chart is moving up while the price range has stopped widening. MACD is slowing down its growth but still keeping a buy signal. Stochastic is leaving the overbought zone suggesting the possibility of a downward correction in the short term.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.3319 (7 September low), 1.3278, 1.3252 (2 September low), 1.3205, 1.3185, 1.3150, 1.3093, 1.3058 (30 August low), 1.3000.
Resistance levels: 1.3375, 1.3400, 1.3444 (6 September high), 1.3480 (15 July high).
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