- Cable trades in session lows in sub-1.3400 levels.
- UK’s Manufacturing/Industrial Production came in below estimates.
- UK’s trade deficit widened more than expected during April.
The Sterling has now faded the initial optimism and is dragging GBP/USD to the area of fresh daily lows in the 1.3370 region in the wake of UK’s data releases.
GBP/USD offered on weak data
Cable is now facing extra selling pressure after UK’s trade surplus widened to £14.04 billion in April, more than initially forecasted and higher than March’s £12.0 billion.
Further downbeat data saw Industrial Production contracting 0.8% MoM and Manufacturing Production dropping 1.4% inter-month during April. In addition, Construction Output expanded below consensus 0.5% on a monthly basis during the same period.
GBP quickly gave away initial gains and situated in session lows around 1.3370 vs. the greenback following today’s publications.
On the positioning front, GBP speculative net longs receded to 2-week lows during the week ended on June 5, as showed by the latest CFTC report.
GBP/USD levels to consider
As of writing, the pair is losing 0.24% at 1.3375 and a break below 1.3353 (10-day sma) would expose 1.3205 (2018 low May 23) and finally 1.3039 (low Nov.3 2017). On the upside, initial resistance is located at 1.3457 (low Jan.11) seconded by 3474 (high Jun.7) and then 1.3600 (200-day sma).
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