- British Pound after testing the 1.5150 resistance area against the US Dollar started to move lower.
- There was a contracting triangle formed on the hourly chart, which was breached to increase the downside acceleration.
- In the UK, the Industrial Production released by the National Statistics posted an increase of 0.1% in October 2015, compared with the forecast of 0%.
- On the other hand, the UK Manufacturing Production posted a decline of 0.4% in October 2015 whereas the market was not expecting any change.
There was a short-term top created in the GBPUSD pair, which took it lower Intraday. There was a contracting triangle on the hourly chart, which was broken recently to set the pace for more losses in the near term.
The pair is currently trading near the 61.8% Fib retracement level of the last leg from the 1.4892 low to 1.5150 high. A break below it may call for a move towards the 76.4% Fib level.
The pair is well below the 100 and 200 hourly simple moving averages, which is a bearish sign.
Uk Industrial Production and Manufacturing Production
Today, the UK Manufacturing Production, which measures the manufacturing output was released by the National Statistics. The market was not expecting any change in the production in October 2015, compared with the preceding month. However, the outcome was disappointing, as there was a decline of 0.4%.
On the other hand, the UK Industrial Production, which measures outputs of the UK factories and mines posted an increase of 0.1%, whereas the market was lined up for 0%. The report stated that “Total production output in October 2015 is estimated to have increased by 0.1% compared with September 2015. There were increases in 3 of the 4 main sectors, with the largest positive contribution coming from the water supply, sewerage & waste management output, which increased by 1.7%”.
Overall, the GBPUSD pair is under pressure and may slide down in the near term.