- The British Pound slide against the US Dollar stopped near the 1.40 support area.
- However, the GBPUSD pair is currently facing sellers near a bearish trend line formed on the hourly chart.
- Today, the UK Industrial Production released by the National Statistics posted a decrease of 0.5% in Feb 2016.
- UK Manufacturing Production declined by 1.8% in Feb 2016, more than the forecast of -0.7%.
The British Pound really had a tough time not only against the US Dollar, but also against the Japanese Yen. There is a bearish trend line formed on the hourly chart of the GBPUSD pair, which is acting as a resistance and preventing gains.
The pair is currently above the 50 hourly simple moving average, but we cannot ignore the trend line resistance since the 100 SMA is just placed above it.
There is also a descending channel pattern formed on the same chart, which can provide us the next break in the short term.
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 slated for no change in production in Feb 2016, but the report stated that there was a decline of 0.5%.
Moreover, the report added “Total production output is estimated to have decreased by 0.5% in February 2016 compared with the same month a year ago, the largest fall since August 2013. The largest contribution to the fall came from manufacturing, which decreased by 1.8%. This was the largest fall since July 2013, when it fell by an equal amount “.
In short, there was nothing in the report for the British Pound bulls, which leaves it at a risk of more losses in the near term.