GBP/USD (current price: 1.3067)
The Pound fell below the all-important 1.30 level in early trading yesterday after the release of the Manufacturing Production number. The indicator showed a decrease of -0.3% compared to the expectations of a flat month. The British Goods Trade Balance also missed expectations and the releases weighed on the pair as well. Cable finished back above the crucial level after recovering in late trading, and that might signal an upcoming correction.
Our assessment: GBP/USD is trading around its 30-year low near the 1.30 mark, but it bounced back quickly after yesterday’s break-down with another support level still below the current rate at 1.2850.
