07, February 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

The whole day yesterday the pair was in a canal waiting for important news that should be published today.

At 13:30 MSK we expect industrial production index for December. The forecast is the index to rise on 0.9% against 0.3% in November.

The growth in manufacturing production expected 0.8% against of 0.3% in November.

The trade balance index for December is expected 8.9 billion pounds against -9.164 billion in November. UK trade balance excluding trade with the EU (Trade Balance Non EU) is expected 4.2 billion pounds against 4.519 billion in November.

The total trade balance (Total Trade Balance) forecast is 3.2 billion pounds against 3.4 billion pounds in November.

At 16:00 MSK we expect the Bank of England's interest rate and the target level of bond purchases.

At 19:00 GDP growth estimate from the National Institute of Economic and Social Research (NIESR) for January should be published.

Technically since yesterday nothing has changed, the price also slides under the line of the channel and the development of Fibonacci downward movement is possible after fixing prices below the 123.6% Fibonacci correction at the four-hour chart (1.5646). When the price fixes below 1.5646 it may trigger a downward movement with goals: 1.5620, 1.5577, 1.5555.

If all coming news are good then a short term move up to a magnetic point on the H4 1.5695 will be possible.