GBP_Index Analysis: Preparing for macroeconomic data release

March 9, 2020

By IFCMarkets

Preparing for macroeconomic data release

A downward movement means weakening of the British pound. Brexit could negatively affect the British economy. Important macroeconomic data for January will be released in the UK this Wednesday: Construction Output, Industrial Production, Manufacturing Production, Monthly GDP, Trade Balance and others. All forecasts are negative, which may adversely affect the dynamics of the pound. Note that the rate of the Bank of England is 0.75%, which is much less than annual inflation of 1.8%. According to interest-bearing futures, with 100% probability the Bank of England will lower the rate to 0.5% at the next meeting on March 26. Let us recall that on March 18, the next round of negotiations on Brexit begins, which may affect the dynamics of the pound.

Indicator VALUE Signal
RSI Neutral
MACD Sell
MA(200) Sell
Fractals Neutral
Parabolic SAR Sell
Bollinger Bands Sell

 

Summary of technical analysis

Order Sell
Buy stop Below 1,358
Stop loss Above 1,408

Market Analysis provided by IFCMarkets