Global macro overview for 10/02/2017:
The Industrial Production data from the UK has surprised the market participants today. The analysis anticipated the figure to decrease -0.2% in January after 2.0% rise two months ago, but the number was released at the level of 1.1%, way above the expectations. Moreover, on a yearly basis, the industrial production increased 4.3% already. Unfortunately, the ONS said that the numbers won't tack anything on to the Q4 GDP revision. They add that manufacturing was boosted by the Pharma sector, which is notoriously volatile. In conclusion, very strong numbers from the UK industrial production sector are yet another proof all the UK economy is doing very well in a post-Brexit environment.
Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market still trades around the weekly pivot at the level of 1.2522 and the market conditions seem to be overbought. The technical resistance at the level of 1.2545 was violated, but the market reversed and no continuation occurred so far. The next support is seen at the level of 1.2411 and the most important one at the level of 1.2347.
