Amid the market drop induced by weak data on China and the US, yesterday the pound fell 60 points.
Today at 12:30 GMT+4 data on Inflation in the UK in March is published. CPI is expected to be flat 0.3% vs. 0.7% in February, Core CPI is estimated to be flat, 2.3%. Retail Price Index is forecast to drop from 0.7 in the previous month to 0.4%; House Price Index is expected to rise from 2.2% to 2.8%. PPI Input is forecast to fall 0.3% against a 3.2 rise in the previous month; PPI output is estimated to rise 0.3% vs. a 0.8% growth in February. On the whole the situation is bearish, as the major indices are estimated to drop. Moreover, data on US Manufacturing production is expected to be flat.
Technically, the way towards the first target area 1.5220/36, the levels of Fibonacci on the H4 261.8% and 271%, is open. When the price tests this area the area of 1.5183/97 opens, it is the levels of Fibonacci 236% and 361.8%.