Search ForexCrunch

After many disappointing months, the British manufacturing production made a significant comeback – a rise of 1.8%. This beats high expectations for a rise of 1.1%, but GBP/USD hardly moves.

As seen in the Manufacturing PMI, and to a lesser extent in the the services and construction PMIs, the British economy is still struggling. This comeback in production during June seems like a correction after the big fall, and not as a significant change in the course of the British economy.

The wider figure of industrial production disappointed: it rose by only 0.9%, compared with +1.1% that was expected. It also experienced a big drop of 1.7% last month.

It is depressed by too many bad figures and worries from Europe. The pair is now around the 1.60 line, just several pips higher than before the release.

Later on today, the Bank of England is expected to leave the interest rate unchanged, yet again.

Support is found at 1.5910, followed by 1.5820. Resistance is at 1.6110, followed by 1.62. For more about the GBP/USD, see the British pound forecast.