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 in the UK economy, and strong readings are an indication of economic growth. The indicator rose a healthy 1.2% in the July release. However, the markets are bracing for a sharp reversal in August, with a forecast of -3.2%. Such a sharp decline could hurt the pound. Sentiments and levels GBP/USD has exhibited quite a bit of volatility in July, and fell over two cents last week before recovering partially late in the week. The British economy is in deep trouble, and many investors will be drawn to the safety of the US dollar if the turmoil in Europe continues. Thus, the overall sentiment is bearish on GBP/USD towards this release. Technical levels, from top to bottom: 1.5805, 1.5750, 1.5648, 1.5600, 1.5521 and 1.5415. 5 Scenarios Within expectations: -4.3% to -3.5%: In such a case, GBP/USD is likely to rise within range, with a small chance of breaking higher. Above expectations: -3.4% to -3.0%: A stronger reading than forecast can send the pair well above one resistance line. Well above expectations: Above -3.0%: Such an outcome could prop up the GBP, and a second resistance line might be broken as a result. Below expectations: -4.4% to -4.8%: In this scenario, GBP/USD could lose one level of support. Well below expectations: Below -4.8%: A very sharp drop by the indicator 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 Risk on, for now FxPro - Forex Broker 10 years 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 in the UK economy, and strong readings are an indication of economic growth. The indicator rose a healthy 1.2% in the July… 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.