GBPUSD testing 1.30000 levels, UK Data in focus
The UK docket has the monthly and quarterly GDP releases today for the third quarter, alongside the trade balance and industrial production, all of which will be published later this session at 0930 GMT.
The United Kingdom GDP is expected to arrive at 0.1% m/m in September while the first readout of the Q3 GDP is seen at 0.6% q/q and 1.5% y/y.
Meanwhile, the manufacturing production, which makes up around 80% of total industrial production, is expected to show m/m growth of 0.1 % in September, up from a contraction of 0.2% recorded in August. The total industrial production is expected to come in at 0.1% m/m in Sept as compared to the previous reading of 0.2%.
On an annualized basis, the industrial production for Sept is expected to have dropped 0.5% versus 1.3% previous, while the manufacturing output is also anticipated to have dropped 0.4% in the reported month versus 1.3% last.
Separately, the UK goods trade balance will be reported at the same time and is expected to show a deficit of £11.250 billion in June vs. £11.195 billion deficit reported last.
Brexit optimism has been driving the Cable’s rally. However the markets see hat Brexit still going nowhere.And a Hawkish FED puts the pair under selling pressure.
Cable is trying to hold above 1.30000 physiological level. – EMA 50 and EMA 100 of H4 Chart – It is still above the cloud.
If UK data does not meet the expectations, 1.29550 is likely to be tested. GBP bulls will try to hold the pair above the cloud. 1.29300 is the critical support and we believe that the pair will find buyers at 1.29300 if tested.
We will publish the potential trade opportunites for the members.
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