GBP/USD Weekly Forecast – 18 January – 22 January

Events that marked the week:

Tuesday brought UK Industrial Production data. Total production output is estimated to have decreased by 0.7% between October 2015 and November 2015. Analysts were anticipating no change. There were decreases in all of the main sectors, with manufacturing, mining & quarrying and electricity & gas having the largest contributions to the decrease. Manufacturing output decreased by 0.4% in November 2015 compared with October 2015. The largest contribution to the decrease came from the manufacture of basic pharmaceutical products & pharmaceutical preparations, which decreased by 4.9%. Read more...

UK Construction Output fell by 0.5%

In November 2015, output in the construction industry was estimated to have decreased by 0.5% compared with October 2015. Analysts were anticipating 0.5% increase. All new work was the largest contributor to the fall, decreasing by 0.7%, with repair and maintenance (R&M) falling 0.2%.

GBP/USD Daily Forecast – 15 January

Yesterday's session was marked by BoE interest rate decision and the following Minutes. The Bank of England kept its benchmark interest rate unchanged and announced no change to its asset purchase facility program, it said on Thursday. The BOE said it was holding the benchmark interest rate at 0.50%, in a widely expected move. The rate has been held at that level since March 2009. The central bank also said it was to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion.

GBP/USD Daily Forecast – 15 January

Sterling was initially pushed lower in the course of the yesterday's session, but found support around 1.4360 area and managed to rebound after BoE's interest rate decision and the following minutes. However, we believe that this rebound is only of a short-term basis. Pair is likely to find support around 1.4350 area, so this would be our short-term buying point and resistance above 1.45 handle so this is where we would place short-term selling bids.