The recovery of the British economy continued in March. Despite a minor slowdown in some sectors, the overall industrial sector of the British economy is expanding firmly.
According to the report published by Markit, the business activity index for the Uk's industrial sector indicated the value equal to 55,3. This is below the expected value of 56,7. Still, figures above 50 indicate growth. At the same time, Markit experts anticipate growth in Q1 2014.
The experts report that the recent slowdown was mainly caused by lower demand for some of the UK exports. The biggest loser was the export to the Asian-Pacific region.
Despite the fact that the recent report disappointed the market, the British economy is still recovering and expanding. It still remains the major stimulus for further job creation. Therefore, there are reasons to expect the UK's GDP to gain 0,7% in the first quarter of 2014. Another thing to consider is the fact that despite a decline in the amount of export orders, new jobs are still being created. Moreover, the amount of new jobs has been growing steadily over the last 11 months.
GBPUSD
As we mentioned above, the recent report slightly disappointed traders and investors. Therefore, the British Pound is currently showing some weakness against the US Dollar. This is going on within the scope of a retracement against the existing long-term rally in the market of GBPUSD.
Masterforex-V Academy reports that at this point the currency pair is forming wave A/B of level H3 or higher. A break above 1.6683 will give way to a further high, thereby initiating a bigger-scale wave (A/B of Daily). If this is the case, the closest levels of resistance will be found at 1.6717 and the top of the MF sloping channel. A break below the local low 1.6618
will give way to a further decline down to 1.6618. In this case, the bottom of the mF sloping channel and the MF pivot located at 1.6611 will become the closest major levels of support.
