GBP/USD Approaches 1.2500, Weighed By Gloomy UK Data

Image Source: DepositPhotosThe Sterling is giving away previous gains on Wednesday, as a string of downbeat UK macroeconomic releases have boosted concerns about the country’s economic outlook.

National Statistics data has revealed that the UK economy contracted at 0.3% in October, well beyond the -0.1% expected, and following a 0.2% growth in September.Beyond that, manufacturing production dropped 1.1%, against market expectations of a flat performance, driving industrial output 0.8% down instead of the 0.1% decline forecasted by the experts. Weak UK data poses a challenge to the BoEThese figures offset the positive impact after Tuesday’s strong employment report and pose a headache for the BoE ahead of Thursday’s monetary policy decision.

Later today, the Fed is expected to leave its benchmark rate unchanged at the 5.25% – 5.5% band. The market will be attentive to the dot plot and Chairman Powell’s comments about the bank’s next policy steps, which might boost USD volatility.  Technical levels to watch GBP/USD

OVERVIEW Today last price 1.2522 Today Daily Change -0.0048 Today Daily Change % -0.38 Today daily open 1.257


TRENDS Daily SMA20 1.2568 Daily SMA50 1.2358 Daily SMA100 1.2458 Daily SMA200 1.2492


LEVELS Previous Daily High 1.2616 Previous Daily Low 1.2514 Previous Weekly High 1.2724 Previous Weekly Low 1.2502 Previous Monthly High 1.2733 Previous Monthly Low 1.2096 Daily Fibonacci 38.2% 1.2577 Daily Fibonacci 61.8% 1.2553 Daily Pivot Point S1 1.2517 Daily Pivot Point S2 1.2465 Daily Pivot Point S3 1.2416 Daily Pivot Point R1 1.2619 Daily Pivot Point R2 1.2668 Daily Pivot Point R3 1.272

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