About 10:30 we got to know a number of data from the British economy. They included industrial production, the production of goods in factories and trade balance. The whole is gathered in the screenshot below:
As you can see none of the numbers is optimistic. The data proved to be weaker both from previous publications and analysts’ forecasts. On M5 chart of GBPUSD we don’t see significant movements after the publication:
This is not surprising because the markets still didn’t recover after a night’s phenomenon called flash crash. What are the reasons for the strong depreciation of the pound sterling? You can learn from the market overview, where were presented the opinions of analysts commenting possible causes of the crash.
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Taking a look on the H1, we see that the current price movement is set in the range of candle. Here are the resistance level around 1.2475 (76.4% abolition of long candle downward), while support is near 1.2388 (removal of 61.8% of the same candle).
