According to the Office for National Statistics (UK), Great Britain’s industrial production shrank by 0.3% in February 2016 relative to the previous reporting period, which is January 2016. As for the y/y figures, they indicated a 0.5% drop over the same reporting period (March 2016 but relative to March 2015).
It should also be noted that the m/m industrial production figures were revised. At the same time, analysts had expected stronger figures in February – a 0.1% increase to be more specific. The y/y figures weren’t revised. We also remind you that the industrial production growth seen in January 2016 was revised as well – 0.2% in the revised report versus 0.3% in the preliminary one.
At the same time, the U.K.’s manufacturing production showed some weakness by dropping 1.1% m/m and 1.8% y/y respectively in February 2016. Also, the country’s external trade balance saw its deficit reach record-high levels over the same reporting period. It by far exceeded the expectations of 3.4 billion pounds and went all the way up to 4.8 billion pounds in February 2016. This is also confirmed by the ONS report.
FOREX
In the meantime, Masterforex-V Academy reports that the British Pound has recovered a bit against the U.S. Dollar. Still, the bias remains bearish, which means that the current recovery cannot be treated as a reversal at this point. The currency pair is trading close to 1,4104.
The closest level of support is the 1,3835 low.
The closest levels of resistance are 1.4513 as well as the areas around MF sloping channels (as shown below).
