During this year, Cable is trading mainly bearish easing 2.23%. Traders of the GBPUSD pair, which at the moment is quoting near to 1.2455, are waiting for the industrial Activity data release.
Will UK Industrial Production disappoint again?
Within the battery of economic data that will be published during the European trading session, we highlight the industrial production of the United Kingdom. The industrial production (MoM) during May reported a decrease of 2.7%. However, analysts’ consensus is optimistic, expecting a 1.6% increase. Could a surprise drive a change in the bearish sentiment from the pound?
Pound and the long-term ascending channel
On a technical side, the cable is moving in the baseline area of the long-term ascending channel. The RSI oscillator is showing signs of a potential upward reverse. However, it’s still premature to indicate it is a reversal signal of this GBPUSD bearish trend. The price approaching its previous lows of the year, makes us assume there could be a rebound reaction around the psychological level area of 1.2400. Our short-term bullish target is in the re-test of the 1,275 area. The invalidation level for the long-term bullish cycle occurs if the price closes under 1.23720.
Remember that the price is not forced to move as our outlook proposes. The chart released corresponds to an Elliott Wave Analysis application.