FXstreet.com (San Francisco) – The GBP/USD fell and now hovers at session lows around 1.5500 in late Asia, weighed by pessimism after a meeting of euro zone finance ministers offered no positive surprises, while disappointing Chinese import data sparked a flight to U.S. dollar safety.
In the European session ahead, GBP’s movement will be partly driven by the release of UK domestic data, including Industrial Production and Trade Balance figures for May, which are expected to be mixed. The UK’s trade deficit is expected to have narrowed, while Industrial Production is expected to show further contraction in the manufacturing sector. All indicators are scheduled for release at 08:30 GMT.
To regain the upside, the market may need a sustained push back above the 1.5500 figure, however, given the downward-trending price behavior, the downside remains in play, with ascending trendline support noted at 1.5415 (1.3502/1.4230 troughs). According to the FXstreet.com Independent Analysis Team, more immediate support lies at 1.5490, then at 1.5450. GBP/USD last trades at 1.5500 from 1.5524 late Monday.
