Sasha Singh
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GBPUSD : Uptrend Now Came to an End

GBPUSD is trading lower today even after the better than expected U.K. manufacturing data. The pair was trading near five year highs. Official data showed that U.K manufacturing production rose .5% in March beating the economist’s expectation for an increase of .3%. A separate report showed that the trade deficit of U.K. narrowed to 8.48 billion pound from a previously revised estimate of 9.09 billion pound. Economists were expecting trade deficit to widen. String of upbeat economic data strengthened the expectation that the bank will soon increase the interest rates ahead of other central banks.

However looking at the daily chart, the pair lost its uptrend breaking below the upward sloping channel. The pair should find support at 1.6852. If it breaks this support level it may go further down to 1.6820 or 1.6776. Stochastic oscillator is also indicating that the pair is now going to follow downtrend reversing the uptrend.