UK manufacturing production outlook: GBPUSD direction eyed

UK manufacturing production outlook: Markets expect October manufacturing production to emerge a bit weaker at 0.5% on monthly basis. What to expect from the cable?

7 December, AtoZForex The UK office for National statistics is about to release the change in the total inflation-adjusted value of output produced by manufacturers figures across the UK, or in other words, the UK industrial and manufacturing output figures. The UK office for National statistics is releasing such reports every month.

UK manufacturing production outlook

Traders track this report, as it is perceived as a clear indicator of the economic health. The release is scheduled at 9:30 GMT. Thus, it is high time to talk about the possible reactions of the market. Market experts suggest that the industrial production in the UK is likely to bounce back in October.

Moreover, markets anticipate the manufacturing production to emerge a bit weaker at 0.5% on monthly basis in October, versus a 0.6% advance seen in September. Meanwhile, market experts expect the total industrial production to appear positive. Market analysts expect it to bounce back to 0.2% m/m in October, in comparison to 0.4% drop in September.

Additionally, the analysts expect the release to attract a lot of attention for the cable. GBPUSD might return its bullish trend and head for a test of 1.27 handle. Yet, in the case of data will fall short of anticipations, then GBPUSD could weaken.

GBPUSD technical levels to eye

Analysts believe that the cable now seems to prolong its reversal move further towards 1.2600 support level. In case the pair will not defend the 1.2600 support handle, it is most likely to drop towards its next support at 1.2540-35, according to experts.

As for the upside, any uptrend might now face firm resistance at 50% Fibonacci retracement level near 1.2700 levels. In case GBPUSD will be able to surpass 1.2700 resistance level, it could provide the momentum for the pair to reach near 1.2790 region.

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