GBP/USD upside capped near 1.3080 following UK data
- Cable meets resistance in the 200-hour SMA near 1.3080.
- UK Industrial Production expanded 0.6% MoM in February.
- UK 3M GDP expanded 0.2% inter-month.
The Sterling is trading on a firm note on Wednesday and takes GBP/USD to the 1.3080 region, coincident with the relevant 200-hour SMA.
GBP/USD looks to Brexit, up on data
The British Pound has resumed the upside today following a better tone in the risk-complex and auspicious results from the UK industrial sector.
In fact, Industrial Production expanded at a monthly 0.6% during February and Manufacturing Production rose 0.9% from a month earlier, both prints coming in above expectations.
Further data saw the trade deficit shrinking a tad to £14.11 billion in February from January’s £14.62 billion deficit, Construction Output expanding 0.4% from a month earlier and the GDP expanding at a monthly 0.2% on the 3-month basis ended in February.
Back to Brexit, EU leaders will discuss a longer extension of Article 50 deadline at today’s Summit in Brussels. In this regard, latest news signals to a potential extension of up to one year with the chance of leaving earlier, according to EC’s D.Tusk.
GBP/USD levels to consider
As of writing, the pair is gaining 0.17% at 1.3071 and faces initial resistance at 1.3093 (55-day SMA) seconded by 1.3152 (21-day SMA) and then 1.3196 (high Apr.3). On the other hand, a breach of 1.2976 (low Mar.29) would expose 1.2974 (200-day SMA) and finally 1.2960 (low Mar.11).
