14, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

The pound keeps falling as the economical data is too weak to support it.

The pound fell to its lowest level against the dollar since June 2010, as weak industrial production data heightened concerns that the UK economy plunges into another recession.

Industrial production in the UK unexpectedly fell by 1.2% in January and 2.9% on an annual basis, the National Statistics Office  reported on Tuesday.

Economists had expected industrial production growth in January. Weaker-than-expected data stimulated fears that the UK economy is on the verge of "triple dipping", or third recession in five years.

The report also raised the expectations of what the Bank of England to stimulate a sluggish economy through additional measures of monetary easing, which generally weaken pound. The next meeting of the central bank should be held April 3-4.