Very ugly UK economic data

GBP/USD remains under pressure after Bank of England Chief Economist Andy Haldane said economic data for the first half of the year would likely be "very ugly". The latest official jobs report showed that U.K. jobless rate for the three months to February edged up to 4.0% (vs steady at 3.9% expected). On the other hand, CPI data for March were reported at +1.5% on year, as expected.

From a technical point of view, on a daily chart, GBP/USD stands below its strong horizontal resistance at 1.2745 and remains capped by its declining 50-day moving average (in blue). The daily RSI stands within its selling area between 50 and 30. Readers may therefore consider the potential for further weakness below horizontal resistance at 1.2745. The nearest support would be set at previous overlap at 1.1950 and a second one would be set at set at Mar. 19 bottom at 1.1405 in extension.

Source: TradingView, GAIN Capital

Related tags: GBP Forex Forex UK

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