Yesterday data on UK Trade Balance was better than expected -8.2 bln pounds against -8.8 bln. However, Industrial Production in January dropped considerably -1.2% against forecast for 0.1% and 1.1% in December. Manufacturing Production fell 1.5% vs. expectations for it to stay flat and increase in 1.5% in December. Virtually Industrial Production touched the 20-year low. Negative outlook was prevailing and the pound lost 70 points. However, afterwards amid major market’s growth it gained losses. Optimism was added by the Falkland islands referendum. The overwhelming majority of residents voted “Yes” to the Falkland islands remaining as an overseas territory of the United Kingdom. Data issued by London-based NIESR revealed that GDB contracted 0.1% in February. In January it was flat. The country is on the verge of triple dip recession.
Today there is no data on UK. At 16:30 GMT+4 US Advance Retail sales are published, it is expected to be 0.5% vs. 0.1% in January. Both the markets and the pound are expected to grow. Thought, there are no fundamental prerequisites for it.
If the price breaks the resistance line of the Fibonacci channel, the price will face the resistance of the high of March 11 1.4942. When it is reached, the area 1.4970/86, resistances on the H4 and daily chart, may be reached. Then the target of the resistance of the Fibonacci channel on the H4 1.5044 opens, if the price leaves it, then 1.5080, the high of March 7 opens.