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Data on industrial production in the United Kingdom recorded a slowdown in the rate of decline from -3.2% to -3.1%. The revision of the previous figures from -4.3% to -3.2% had the most significant impact. The British pound reacted positively to the industrial data.
A similar indicator was published in the EU, where the growth rate of industrial production accelerated from 0.9% to 2.0%, with economists' forecast growth of only 1.2%. This positive factor stimulated the euro to grow further.
Data on U.S. jobless claims was also released, where they recorded a slight decrease in the overall indicator. The details of the statistics indicate that the volume of continuing claims for benefits fell from 1.823 million to 1.810 million, and initial claims rose from 228,000 to 239,000.
EUR/USD accelerated its growth after overcoming the 1.1000 psychological level. This led to an increase in the volume of long positions and inertial growth, during which technical signals of overbought were ignored.
GBP/USD has stabilized above the 1.2500 resistance level, which indicates several important technical factors: firstly, the continuation of the medium-term upward trend, and secondly, an increase in the volume of long positions, which may contribute to further growth in the value of the pound sterling.
Today, investors will focus on retail sales data in the United States, where growth is expected to slow down from 5.4% to 3.2%. Not the most favorable statistics for the U.S. dollar.
Time targeting:
U.S. Retail Sales – 12:30 UTC
The next resistance level is in the 1.1200 area, which may slow down the current upward cycle. However, the expected corrective movement should not disrupt the medium-term upward trend.
The growth in the volume of long positions in the pound sterling may lead to a price movement in the area of interaction of trading forces 1.2670/1.2720, which will support the medium-term trend and allow for more significant price changes. At the same time, an alternative scenario in the form of a corrective pullback is possible, which will not violate the cyclicality of the medium-term trend.
The pullback may occur if the price returns below the 1.2500 level. However, the area of interaction of trading forces 1.2670/1.2720 may put pressure on long positions and cause a technical pullback.
The candlestick chart type is white and black graphic rectangles with lines above and below. With a detailed analysis of each individual candle, you can see its characteristics relative to a particular time frame: opening price, closing price, intraday high and low.
Horizontal levels are price coordinates, relative to which a price may stop or reverse its trajectory. In the market, these levels are called support and resistance.
Circles and rectangles are highlighted examples where the price reversed in history. This color highlighting indicates horizontal lines that may put pressure on the asset's price in the future.
The up/down arrows are landmarks of the possible price direction in the future.
*La presente analisi del mercato ha un carattere esclusivamente informativo e non rappresenta una guida per l`effettuazione di una transazione.
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