FXStreet (Mumbai) – The capitulation of the USD longs triggered by a sell-off in the USD/JPY pair pushed the GBP/USD to a session high of 1.5421 levels.

Focus on UK Industrial production data

Investors await the release of UK industrial production data, which could show a slowdown in the activity in April. Month-on-month figure is seen at 0.1% from 0.5%, while year-on-year is seen at 0.4% from 1.1%.

The pair currently trades at 1.5409. The latest uptick was largely a result of a capitulation in the USD longs triggered by a sharp sell-off in the USD/JPY pair after BOJ’s Kuroda said yen may not weaken much further on a real effective exchange rate basis.

GBP/USD Technical Levels

The immediate resistance is located at 1.5439 (June. 4 high), above which the pair could rise to 1.5490 (Apr. 30 high). On the flip side, a break below 1.5390 could push the pair down to 1.5356 (200-MA).

The capitulation of the USD longs triggered by a sell-off in the USD/JPY pair pushed the GBP/USD to a session high of 1.5421 levels.

(Market News Provided by FXstreet)

By FXOpen