UK Manufacturing Can Only Send GBP/USD Further Down
Skerdian Meta • 1 min read
Today is a manufacturing day since most of the major world economies release the manufacturing data for the previous month. After the European manufacturing numbers earlier this morning, the UK manufacturing report is about to be released soon.
I don’t think that there is any chance that this can send the GBP higher. GBP/USD has been trading in a steep downtrend in the last several days and it is difficult that this report can change the trend.
If it was the services report or the earnings, maybe some great numbers would put a dent on the trend and perhaps reverse it for a few sessions. But manufacturing accounts for only a small portion of the British economy, so it can’t be a game changer.
GBP/USD has shifted the trend form extremely bullish to extremely bearish this month. Right now this forex pair is trading at 1.3740s, so all support levels have been broken on the way down from above 1.43. The next one comes at 1.3650 where we opened our sell forex signal.
So, we’re getting back where we started with this signal. Well, at least it missed the stop loss which is great. Now we are going to be charging forward with it as GBP/USD continues to slip lower.