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EUR/GBP Signal - UK Manufacturing production - 11 Jan 2017

Signal details
Entry Price: 
0.8680
Close Price: 
0.8664
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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Manufacturing and industrial production figures from the UK will be released today at 0830 GMT. Economists are forecasting a 0.6% increase in manufacturing production on month over month basis while industrial production is expected to rise 0.8%. The forecasts are hawkish considering that manufacturing and industrial sectors posted a decline previously, falling 0.9% and 1.3% respectively. The British pound has started the week on a bearish note after comments from PM Theresa May on Brexit. Since then, the GBP has been weaker across the board with EURGBP seen rising steadily.

On the intraday charts, EURGBP is showing signs of exhaustion to the uptrend with price posting a strong reversal after spiking close to 0.8750 yesterday. The current intraday bearish trend could see a continuation as price hovers near 0.8690. Therefore, the most probable trade idea for today is to purchase daily PUT options near 0.8680 for a 21:00 GMT expiry time as the euro could show some short term weakness in order for EURGBP to pull back lower and correct this uptrend.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.