Sterling Depreciates Ahead of U.K.’s key Economic Indicators, 20+ PIP Volatility Likely; March 12, 2021
U.K. Industrial Production & Manufacturing Production Data
U.K. has scheduled to release multiple fundamentals at 0700 GMT/1230 IST. Such indicators include U.K.’s Industrial Production, manufacturing production, goods trade balance and GDP m/m data. U.K.’s factory production data is 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. While Export demand also impacts production and prices at domestic manufacturer. On the other end, GDP is the broadest measure of economic activity and the primary gauge of the economy’s health.
Let’s see how GBP has reacted during the previous data release:
GBP/USD: The pound remains slightly volatile ahead of U.K.’s multiple economic indicators. The pair made intraday high at $1.4004 and low at $1.3970 mark. Triple EMA on a day and H1 chart suggest bullish trend for the time being. A sustained close above $1.3995 on H1 chart requires for the upside rally. On the other hand, consistent close below $1.3968 on H1 will test further supports too.
Key Resistances: $1.4032, $1.4061, $1.4101
Key Supports: $1.3951, $1.3887, $1.3838
Take a look and do trade wisely!