GBPUSD 30 minute chart is setting up to appreciate with daily showing signs of bullish sentiment.
Technically GBPUSD has been finding support around the 1.6050 level which roughly corresponds with the 61.8 retracement level for the larger swing (high to low on the chart below). Price is now isolating in the range and forming a V shape, with a break of resistance (1.6110) where this level becomes support (i.e. price breaks, retraces and bounces off) qualifies an potential move to the extension (1.6190) with a break below support at 1.6050 negating our bullish view.
Watch out for:
10:30am GMT - UK Manufacturing Production exp 0.5% prev 0.6%
Change in the total inflation-adjusted value of output produced by manufacturers;
Actual > Forecast = Good for currency.
Manufacturing makes up around 80% of total Industrial Production and tends to dominate the market impact; It's a leading indicator of economic health - production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.
10:30am GMT - UK Industrial Production exp 0.5% prev 0.4%
Actual > Forecast = Good for currency;
Mines and utilities make up around 20% of total production, so this data tends to be overshadowed by Manufacturing Production which makes up the other 80%;
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* Chart source: eBridge Trader
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