GBPUSD Breaks Below 1.27 on Weak Data

Pound is trading 0.34 percent lower today at 1.2695 after weaker-than-expected UK macro data that released earlier. The UK economy contracted 0.4% in April, while manufacturing and industrial production also recorded steep declines on monthly and yearly basis. USD strength also helped to push the pair lower. The pair failed to hold Friday’s gains above 1.27 and up to 1.2750 as traders were disappointed by worst the worst than expected US employment data.

On the technical side the pair consolidates around the 1.27 zone for second week in a row and trading in just 60 pips trading range from 1.2680 to 1.2740. The pair will find support at the low from June 6th at 1.2665 which if breached can accelerate the downward move down to 1.26 round figure. The final support stands at 1.2551 the low from end of May. On the upside first resistance stands at daily high up to 1.2741 while more offers will emerge at 1.2750 the previous week high. A strong close above the area can lead prices to May 21st high at 1.2815.  The Intraday bias is neutral for the pair while the longer term outlook is negative