Yesterday the data on UK Unemployment rate influenced considerably the market. The number of unemployed was up 12.5K, the rate of unemployment grew 0.1% from 7.7% to 7.8%. It made impact on the pound and it fell 150 points. The pound was also hit by unexpected data on the recent Bank of England meeting; the officials considered options including an interest-rate cut to bolster the economy.
Today at 13:30 GMT+4 data on UK Public Sector Net Borrowing in January is published. The forecast is – GBP 11.3 bln against 13.2 bln in December. At 15:00 GMT+4 Industrial Order Book Balance in February is expected to be -16 against -20 in the previous month. If the similar markets do not fall as speedily, the correction of the pound is possible.
From the technical point of view, the correction is expected to 1.5274, the resistance line of Fibonacci channel on the H4 or higher, or to the level of Fibonacci 314% (1.5290). Thereafter, the drop probably continues to the area 1.5190, 1.5160. Potentially the descending move is probable to the support of trendline on the daily chart 1.5123 or the level of Fibonacci 361.8% 1.5088.