GBP/USD unmoved on UK data, around 1.2970

The British Pound has recovered some ground following US releases today, pushing GBP/USD to the 1.2980/85 band albeit deflating to the 1.2970 area soon afterwards.

GBP/USD finds support near 1.2950

After bottoming out in the mid-1.2900s, Cable managed to grab some buying interest despite the mixed results from the UK docket today.

In fact, UK’s industrial production expanded above expectations 0.5% inter-month during June and 0.3% on an annualized basis. Further data saw manufacturing production coming in flat on a monthly basis and advancing 0.6% over the last twelve months.

Additionally, UK’s trade deficit widened to £12.72 in June, while construction output contracted at a monthly 0.1% during the same period.

In the meantime, spot remains on the defensive so far today, fading the initial up tick to daily highs beyond 1.3000 the figure.

Still in the UK, NIESR GDP Estimate is due later ahead of US releases: initial claims, July’s producer prices and the speech by NY Fed W.Dudley (permanent voter, hawkish).

GBP/USD levels to consider

As of writing the pair is losing 0.25% at 1.2973 and a breach of 1.2953 (low Aug.8) would open the door to 1.2927 (50% Fibo of 1.2587-1.3266) and finally 1.2925 (55-day sma). On the flip side, the immediate up barrier emerges at 1.3028 (high Aug.9) seconded by 1.3063 (21-day sma) and finally 1.3096 (10-day sma).