At the end of the last week, the pound strengthened against the US dollar despite the fact that data on industrial production in the UK did not reach the forecasts a little (although it turned out to be better than the previous month). In monthly terms, the indicator was 1.3% in January against –1.3% a month earlier (the forecast was 1.5%). In annual terms, growth was 1.6% in January against 0.0% in the previous month (with the estimate of 1.8%).
US Unemployment Level reached 4.1%, exceeding the forecast of 4.0%, which reflected the weakness of employment market and affected the dollar negatively. In the other hand, the grown of February Nonfarm Payrolls supported USD.
There will be lack of key macroeconomic data in the UK, so the pair’s dynamics depends on the demand on USD.
Support and resistance
On the 4-hour chart, the pair was corrected to the middle line of Bollinger Bands. MACD histogram is in the area of the zero line, its volumes are minimal, and the signal line is moving sideways.
Support levels: 1.3850, 1.3813, 1.3790, 1.3750, 1.3735, 1.3712.