The volume of British industrial production remained just at the September levels, which was widely expected by the surveyed market participants (consensus: 0.0% m / m). The factory production was just above expectations, which increased its annual dynamics by 1.2 pp up to 3.9%. A slight dose of surprise was provided by net exports, as the trade deficit widened by only GBP 328 million to GBP 10,771. A quite disturbing component turns out to be construction production, which in October recorded a monthly decline of 1.7%. against the expected increase of 0.1%.
The British Pound remains insensitive to the above data, thus expecting new reports related to the Brexit negotiations. Cable in the last few hours has recorded about 60 pips downslide. This fall is behind the headline of Bloomberg, who reports that it is unlikely that a trade agreement between the EU and Great Britain will be reached by March 2019.
Let's now take a look at the GBP/JPY technical picture at the H4 time frame. The bulls were able to push the price higher to the new highs at the level of 153.38, but the market quickly reversed and now is trading just above the technical support at the level of 151.91. The clear bearish divergence between the price and momentum oscillator support the bearish bias as the GBU remains highly sensitive to the Brexit negotiations rumors and news.
