FxWirePro: UK GDP, Manufacturing Production data better expectations, GBP/CHF holds marginal gains
Chart - Courtesy Trading View
GBP/CHF was trading 0.19% higher on the day at 1.1490 at around 09:10 GMT, after closing 0.34% lower in the previous session.
The latest data published by Office for National Statistics (ONS) showed earlier on Friday, UK GDP and Manufacturing Production slip lower from the previous month, but bettered expectations.
The British economy contracted 0.1% QoQ in Q2 when compared with a 0.8% growth booked in Q1, beating -0.2% forecast.
On an annualized basis, the UK GDP grew 2.9% in Q2 vs. 2.8% expected and compared with a 8.7% expansion seen in the previous quarter.
The UK GDP monthly release showed that the economy shrank 0.6% in June vs. -1.3% expected and 0.5% previous.
Further, UK manufacturing output arrived at -1.6% MoM in June versus -1.8% expectations and 1.7% booked in May while industrial output came in at -0.9% vs. -1.3% expected and 0.9% last.
The British pound largely unimpressed by better than expected data. GBP/CHF holds marginal gains, but major trend remains bearish.
Major Support Levels:
S1: 1.1464 (Lower BB)
S2: 1.1358 (Lower W BB)
Major Resistance Levels:
R1: 1.1497 (5-DMA)
R2: 1.1553 (5-week MA)
Summary: GBP/CHF trades with a bearish bias. Upside remains capped at 5-DMA. Major and minor trend are strongly bearish. Scope for further downside.
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