GBP/USD soared on good data
GBP/USD rose by about 130 pips to the 1-month high in the $1.6740 area. Pound strengthened on the news that British manufacturing production expanded by 1.0% (forecast: 0.3%) and the industrial production increased by 0.9% (forecast: 0.3%). Such good data encouraged the bets that the Bank of England will hurry with raising the interest rates. The next BoE meeting will take place on April 10. Although this month no changes in policy are expected this month, the central bank will issue an accompanying statement that may shed some light on its mood.
February high at $1.6822 has now come in place. There may be many sellers in this area – this idea is in line with the sideways movement seen in GBP/USD in the last couple of months. The pair’s now very overbought at the short timeframes and is above the upper daily Bollinger band. Support lies at $1.6685 and $1.6650. A near-term correction is possible. All in all the market’s positive about pound.
Tomorrow the Fed will release the March FOMC minutes. Given that this is old news, the impact may be neutral. Still market players may be looking for more info about the first rate hike.
Chart. Daily GBP/USD