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Forex: GBP/USD trading at 1.4847/51 after weak UK data

The GBP/USD recovery movement was sidelined on the heels of weak economic data out of the United Kingdom – the cross is trading at session of 1.4847/51, falling over 50 pips in recent moments to settle -0.46% off its opening.

In the United Kingdom, Industrial Production (YoY) fell -2.9% in January, against expectations calling for a -1.1% decline. Moreover, the Goods Trade Balance came in at -£8.195B in January, beating estimates of -£9.0B. Finally, Manufacturing Production (YoY) was reported at -3.0% in January, against a projected figure of -1.1%.

“The recent GBP/USD downtrend is keeping bears in play, and a break of recent lows suggests an opening psychological 1.4800 barrier down to 1.4780 (Mar 2010 low) coming in near-term focus. In addition, near-term studies hold a definitively negative tone and see room for further extension lower.” warns Slobodan Drvenica, an analyst at Windsor Brokers Ltd.

Drvenica points to the next supports at the 1.4865 level, onto 1.4853, and finally the 1.4800 barrier. On the ascension, a prolonged surge above the 1.4945 resistance will activate additional means of correction at 1.4966 and 1.5000.

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