The British Manufacturing Production, a key indicator, provides analysts and traders with a snapshot of the health of the UK manufacturing sector. A reading which is higher than the market forecast is bullish for the pound. Here are all the details, and 5 possible outcomes for GBP/USD. Published on Tuesday at 8:30 GMT. Indicator Background The British Manufacturing Production indicator measures the changes in output produced by manufacturers and in the turning of inventory. Manufacturing is a critical sector of the economy , and strong readings are an indication of economic growth. The indicator rose a respectable 0.9% in the May release. However, the markets are forecasting a much weaker figure in June, of only 0.1%. Will the indicator surprise the market with another strong reading? Sentiments and levels The British pound finally had a good week against the US dollar after the free fall in May. However, the Spanish bailout and political uncertainty in Greece are likely to cause nervous investors to look for safe haven currencies such as the US dollar. If the UK economy doesn’t show some improvement, look for the pound to lose more ground against the greenback. Thus, the overall sentiment is bearish on GBP/USD towards this release. Technical levels, from top to bottom: 1.5805, 1.5648, 1.5600, 1.5521, 1.5415 and 1.5361. 5 Scenarios Within expectations: -0.1% to 0.3%: In such a case, GBP/USD is likely to rise within range, with a small chance of breaking higher. Above expectations: 0.4% to 0.6%: A strong reading can send the pair well above one resistance line. Well above expectations: Above 0.6%: The likelihood of a sharp expansion in the manufacturing sector is low. Such an outcome would prop up the GBP, and a second resistance line might be broken as a result. Below expectations: -0.4% to -0.2%: A reading in negative territory could cause the GBP to lose one level of support. Well below expectations: Below -0.4%: A very poor reading could push the pair downwards, possibly breaking a second support level. For more about the pound, see the GBP/USD forecast. Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Opinions share Read Next The numbers in Spain FxPro - Forex Broker 10 years The British Manufacturing Production, a key indicator, provides analysts and traders with a snapshot of the health of the UK manufacturing sector. A reading which is higher than the market forecast is bullish for the pound. Here are all the details, and 5 possible outcomes for GBP/USD. Published on Tuesday at 8:30 GMT. Indicator Background The British Manufacturing Production indicator measures the changes in output produced by manufacturers and in the turning of inventory. Manufacturing is a critical sector of the economy , and strong readings are an indication of economic growth. The indicator rose a respectable 0.9% in the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
