- British Pound traded higher against the US dollar, and moved above the 1.4200 levels.
- There was a bearish trend line formed on the hourly chart of the GBPUSD pair, which was broken recently by the bulls.
- UK Industrial Production released by the National Statistics posted a rise of 0.3% in Jan 2016, less than the forecast of 0.5%.
- UK Manufacturing Production was also released, which increased by 0.7%, more than the forecast of 0.2% in Jan 2016.
The British pound managed to gain bids recently and traded higher against the US dollar. The GBPUSD pair broke a bearish trend line formed on the hourly chart, which opened the doors for more gains in the near term.
The pair is currently trading above the 100 hourly simple moving average, which is a bullish sign and if the pair closes above the 50 SMA more gains are possible.
On the downside, the broken trend line may act as a support for the GBPUSD pair and stall the downside move.
UK Industrial Production
Today, the UK Industrial Production, which measures outputs of the UK factories and mines was released by the National Statistics. The forecast was lined up for a rise of 0.5% in Jan 2016. However, the outcome was lower, as the increase was 0.3%.
On the other hand, the UK Manufacturing Production rose 0.7%, which was better than the forecast of 0.2% in Jan 2016. The report added that “There were increases in 3 of the 4 main sectors, with manufacturing (the largest component of production), having the largest positive contribution, increasing by 0.7%”.
Overall, the British Pound is trading with a positive tone, and may continue to trade higher.