UK manufacturing production (MoM) (YoY) and UK industrial production (MoM) (YoY) are set for release on Tuesday, March 11. The figures are forecast at 3.0% (YoY)/0.2% (MoM) and 3.3% (YoY) / 0.3% (MoM) respectively. A better than expected release across the board will drive the GBP/USD towards 2009 highs and hint at a continuation of the longer term uptrend. A worse than expected release will reinforce 2009 highs as resistance, and indicate a potential reversal. If the data is bullish, expect the GBP support of 1.670 to hold and GBP/USD should rise to 1.6800. If the data is entirely bearish, expect a break below the long term resistance and channel support of 1.670. Then there will likely be a decline towards the 2000-period MVA.
By Daniel Elo, Analyst at www.EconomicCalendar.com