Forex: GBP/USD attempts at extending above 1.5850 despite poor UK CBI

FXstreet.com (Barcelona) - After finding a daily low at 1.5810 on London opening flows, the GBPUSD retraced its losses and is now pointing higher, up by +0.10% on the day at 1.5845. The 1.5850 zone has been a barrier against further upside during the morning and it is still keeping the pair from rising after the release of CBI data. However, despite the disappointing figure, the market is attempting at beaching above.

Industrial Trends survey by CBI was released just now, disappointing market participants, as the figure fell from -12 to -20, instead of improving to -11 in January. Earlier, the UK Public Sector Net Borrowing narrowed from £14.266B to £13.208B in December, just a little higher than the expected £13.000B.

"Immediate target at 1.5800 remains in near-term focus, with penetration here to open 1.5753, 28 Aug low, possibly 1.5700, round figure support", wrote Windsor Brokers analyst Slobodan Drvenica, pointing to any bounce higher as corrective with initial barrier at 1.5900, also 200 day MA. "Only regain of 1.6000 handle would ease bear-pressure", he added.