FXstreet.com (Barcelona) - The Pound has resumed decline on a grim economic outlook on its Monthly Inflation Report, which has produced a selling reaction on the Pound which has given away all the ground gained after a better than expected unemployment data.

The GBP USD has continued dropping in during the European trading session reaching as low as 1.4340 down from 1.4555. At the moment the Pound is trying to find support at 1.4340. If this level gives way, next key levels in the hourly chart are 1.4274 and 1.4200. On the Upside, next important level to take would be 1.44, and 1.4460.

The Euro has been trading sideways in European session from 1.2939 to 1.30. Next support levels are 1.2850 and 1.2810. On the upside 1.30, and 1.3071 are the main key levels.

The USD/JPY has been going through a consolidation session trading from 89.69 to 90.20 after de decline from levels above 91 during the Asian session. From intraweek low at 89.70, the USD is trying to build up past 90.20 and 90.50.

On the U.S. session we have the U.S. Trade Balance on Focus, In December, the trade gap is expected to narrow to about $35.50 billion from $40.44 billion in November, a good trade balance report could add buying pressure to the USD, to further appreciate against its European counterparts.