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GBP/USD hits 5-yr lows below 1.4630

FXStreet (Mumbai) - GBP/USD dived deeper in red to the lowest level in five years during the European session, after the latest UK’s production output missed expectations and disappointed markets while US dollar continued its rise from the previous session.

GBP/USD testing 1.46 handle

The GBP/USD pair trades sinks to fresh five year lows of 1.4626 levels, inching closer to 1.46 barrier. The cable extends its slump from the US last session after UK’s manufacturing sector reported weaker growth, evident by the latest industrial production for February which rose only 0.1% on a yearly basis, down from last month's 1.2%, while manufacturing production grew 1.1% year-on-year, also down from January's 1.7%. Both figures were below estimates.

At the same time, rising US dollar against its major competitors with risk from May UK elections still being priced in weighs on sterling. GBP/USD pair. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies turns positive and trades near session highs at 99.77, on its way to test 100 marker.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4725 (Today’s High) above which gains could be extended to 1.4755 levels. On the flip side, support is seen at 1.4600 (May 2010 Lows) below which it could extend losses to 1.4550 levels.

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