GBP/USD extended earlier losses and fell below 1.4831 which was the bottom seen earlier in the year. The low so far is 1.4821. Update: the fall continues and 1.4813 is the last low.. GBP/USD is in the lowest levels since 2010. The round number of 1.48 serves as support, and the next significant support line appears at 1.4611.
It comes after NIESR published an estimate for the British economy, that wasn’t actually that bad and shows that Britain is out of the woods.
The NIESR think tank estimated a growth rate of 0.6% in the three months ending in June – the full second quarter. This estimation follows the same figure for the three months ending in May, and shows hope for the UK economy. The economy grew by 0.3% in Q1 2013 and avoided a triple dip recession.
However, fresh figures weren’t that good. The fall of the pound began earlier in the day with the publication of a big dive in manufacturing production. Instead of rising 0.3% as expected, it fell by 0.8%. This sent cable from around 1.4970 all the way down to 1.4840. A second move began now.
A very recent technical analysis by James Chen, just before the fall, mentions the important lines ahead.
For more lines, events and analysis, see the GBP/USD forecast.
