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Forex: GBP/USD up after upbeat UK data, BoE's Carney ahead

The 1.5660 line has been holding the GBP/USD since early London morning, preventing a slide lower. Just ahead of UK data, the market dropped towards that line, but as it came in better than expected, the pair is moving higher.

UK Goods Trade deficit narrowed more than expected, to £-8.897B (from £-9.275B), as well as Total Trade deficit (at £-3.2B) and non-EU trade deficit (at £-4.23B). UK Industrial Production improved from -2.4% to -1.7% in December, with a monthly rise by +1.1%. UK Manufacturing Production was also upbeat, at +1.6% (MoM), improving the annualized figure from -2.0% to -1.5%.

BoE's Carney is due to testify at 09:45 GMT. “With daily studies now in the negative territory, prospect for further easing is seen likely, as loss of 1.5630 is expected to open 1.5600, Fib 100% expansion of the wave from 1.5804, possibly 1.5530, Fib 76.4% of 1.5267/1.6380 uptrend.”, wrote Windsor Brokers analyst Slobodan Drvenica, expecting any bounce above 1.5700 to be short-lived, as long as 1.5800 stays intact.

UK: Dec Industrial Production (YoY) down 1.7%; (MoM) grows 1.1%

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