The Great Britain Pound fell against the greenback after official data showed that U.K. manufacturing production fell 1.3% in May, the largest decline since January 2013, confounding expectations for a gain of 0.4%. Overall industrial production was down 0.7%, the biggest fall since August 2013, bringing the annual rate to 2.3%. The data indicated that the economic recovery in the U.K. may not be a solid as hoped. However, the pound trimmed losses against the U.S. dollar, as demand for the greenback weakened ahead of the Federal Reserve meeting minutes due on Wednesday.
Technically the pair remains neutral for now as it seems to be trading in a range bound market, a break-out from 1.71781(July 4 resistance) would resume the current bullish trend in the pair in the long term picture as there are on-going rumors that the FED will remain dovish in Wednesday’s meeting. However, a break out of 1.70842 support would see further fall to 1.7000 psychological zones in the medium term picture.