The pound slows growth. Business activity in the UK manufacturing sector

The British pound slowed its growth against the US dollar, while retreating from the maximum of today’s trading at 1.4272. Some pressure on the British is exerted by data on the index of business activity in the manufacturing sector of the UK, which indicated a decline in January to 55.3, which is below the previous value of 56.2. It is worth noting that the index retains its value above the level of 50.0, which indicates a prosperous state of production in the UK.

Do not forget about the main reason for the growth of the pair GBP/USD, which is facilitated by the weakening of the US currency against the backdrop of declining of the profitability of the US government bonds. During today’s trading, the profitability of 10-year and 30-year bonds has dropped by -0.25% on average.

Technical analysis: The GBP/USD pair maintains an upward trend in the short term. It should be noted that for one trading session the pair can pass an average of about 150-170 points, which should be taken into account when trading. The main resistance levels are 1.4340, 1.4390. Support levels are 1.4160, 1.4110.

Fig. GBP/USD. Current price – $ 1.4249

Alexander Sivtsov