GBP/USD pauses sell-off, clings to 1.2150 ahead of UK IP

The bulls are seen defending 1.2150 barrier so far this session on Friday, as risk-on rally in the Asian equities offer the much-needed support to higher-yielding currency GBP.

The GBP/USD pair stalled its overnight decline, and now consolidates the downside amid nervous markets, as attention turns towards the macro fundamentals due on the cards later today.

The UK docket offers the industrial and manufacturing production data, which is expected to show a sharp deterioration in the manufacturing sector activity in January. The manufacturing production is expected to drop -0.6% in Jan versus a 1.3% increase seen previously. At the same time, the UK goods trade balance data will be also published.

However, the main risk event for today is expected to remain the US NFP data, which will determine whether the Fed will hike rates next week, as widely expected by markets.

GBP/USD Levels to consider            

At 1.2160, the resistances are lined up at 1.2186/1.2200 (5-DMA/ round figure) and 1.2250/53 (psychological levels/ Mar 7 high) and above that at 1.2304 (Mar 6 high). On the flip side, the resistances are aligned at 1.2135/27 (classic S1/ Fib S2) and 1.2100 (psychological levels) and below that at 1.2050 (Flash crash territory).