GBP/USD Hurt By Data This morning

The UK Industrial Production and Manufacturing Production data this morning was much weaker than expected this morning and it has pressured the GBPUSD today.  The pair has been largely non-trending over the last few days and the 100 and 200 hour MAs have converged at the 1.5954/62 area.  The midpoint of the last 5 days of trading also provides resistance at the 1.5964 level.  The combination makes the 1.5954 to 1.5964 level as topside resistance for the day.  Before that level should find sellers against the 1.5925 level .  Keep these levels in mind for intraday trading.

On the downside the  there is support at 1.5859/63 and below that the low from last week at 1.5802.

Overall, the GBPUSD has a bearish bias in a dollar negative day.  This makes trading the pair somewhat counter to a traders intuitive bias (i.e. dollar selling).  Good trade location with tight stops is recommended for new positions, but the bias is down as per the analysis above.

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