The outlook is less positive due to sentiment for GBP
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For the UK, GDP and manufacturing data for February, due out on Friday, will guide the Pound. Forecasts show monthly GDP growth will slow to 0.1% after increasing 0.2% in January.
The Index of Industrial Production (IIP) is expected to stagnate after falling 0.2% in January and is estimated to have increased 0.6% annually from the previous level of 0.5%. Monthly Manufacturing Production data is expected to increase 0.1% after stagnating in January. However, on a year-over-year basis, the data is expected to increase at a faster pace of 2.1% compared to the previous month. Previously it was 2.0%.
UK factory data is a leading indicator of aggregate demand from domestic and overseas markets. Positive factory data could boost hopes of the UK economy exiting a technical recession.
Technical analysis: British Pound faces downside risks around 1.2500
The British Pound seems to be heading towards the 1.2500 support level due to the “risk-off” sentiment. The GBP/USD pair has crossed below the 200 EMA at 1.2570, which was an important support level before the US CPI data was released. Cable could see a real pullback if it loses the 1.2500 mark. The RSI indicator is fluctuating near 40. If it falls below this level, a bearish momentum will be triggered.
The Index of Industrial Production (IIP) is expected to stagnate after falling 0.2% in January and is estimated to have increased 0.6% annually from the previous level of 0.5%. Monthly Manufacturing Production data is expected to increase 0.1% after stagnating in January. However, on a year-over-year basis, the data is expected to increase at a faster pace of 2.1% compared to the previous month. Previously it was 2.0%.
UK factory data is a leading indicator of aggregate demand from domestic and overseas markets. Positive factory data could boost hopes of the UK economy exiting a technical recession.
Technical analysis: British Pound faces downside risks around 1.2500
The British Pound seems to be heading towards the 1.2500 support level due to the “risk-off” sentiment. The GBP/USD pair has crossed below the 200 EMA at 1.2570, which was an important support level before the US CPI data was released. Cable could see a real pullback if it loses the 1.2500 mark. The RSI indicator is fluctuating near 40. If it falls below this level, a bearish momentum will be triggered.
Note
BUY GBPUSD 1.2560TP1: 1.2600
TP2: 1.2650
SL: 1.2500
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