The Cable shows growth despite the weak data.
In the UK, the industrial production lost 1.3% in October against the forecast of growth by 0.2%. The manufacturing industry decreased by 0.9%, the forecast was + 0.2%. The forecast of UK GDP from NIESR was 0.4% for November- as in October.
Today, the movement of the pair GBP/USD will depend on the mood of traders.
The report on industrial production cooled the ardor of the bulls and brought them back to reality. The industrial production fell by 1.3%, the manufacturing by 0.9%, the slowing down notes throughout the sector. In general, the situation is far from optimistic.
Analysts say that the UK GDP will continue to slow down in 2017, and its growth is unlikely to exceed 1.4%, primarily due to lower investment and reduce consumer activity against the backdrop of the rise in the price of imports resulting from the fall of the pound.
Today, the UK calendar is empty. The US will publish jobless claims data.
How to trade binary
During the Asian session, the British pound rose slightly against the US dollar. Today, the bulls will try to get back to the level of 1.2660. If the pair overcomes this level, it will seek the mark of 1.2682. The sellers will try to return to the area of 1.2620, as the second test of this level can lead to a reduction to weekly lows of 1.2578. We would buy Call options if the pair rises above 1.2660. This scenario would be invalidated if the pair goes below 1.2620 in which case we go for Put option with the end of the expiry.
Target price: 1.2660
Expiry time: 21:00 GMT