UK manufacturing production dropped by 1.3%, much worse than a rise of 0.4% expected. Year over year, output rose only 3.7% against 5.6% estimated. The wider industrial production also fell by 0.7%, worse than a rise of 0.3% predicted. The previous industrial output number was revised down from 0.4% to 0.3%. Year over year, manufacturing rose only 2.3%, significantly below 3.1% expected.
GBP/USD dropped from around 1.7140 to below 1.7190, and the downwards move continues.
The pound managed to reach fresh multi-year highs on Friday even though it corrected on a weaker than expected services PMI in the UK and a strong NFP in the US.
But this blow is already stronger.
Here is how it looks on the chart:
Support lies at the former post crisis high of 1.7042. The round number of 1.70 follows. On the upside, the region between 1.71 and 1.7110 works as resistance.
For more, here is the GBPUSD forecast.
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