04, February 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

The index of business activity in the manufacturing sector in the UK in January showed the value of 50.8 versus 51.2 in December and 51.0 forecast.

The drop of the pair was accelerated by not good news about U.S. employment index. The pound lost 170 points.

Today at 15:30 MSK should be published index of business activity in the construction sector in January, the forecast 49.7 vs. 48.7 in December.

Still the forecast for January differs from the real economy in Europe and the U.S., therefore, if we get a positive data we will have a short correction.

On the daily chart the Friday candle closed below the trend line, and after fixing it at a younger TF downtrend may continue to go to the point of crossing the Fibonacci 200% level.

At the four-hour chart the goal is the intersection of 361.8% Fibonacci level and red line Fibonacci Channel.