FX.co ★ Global macro overview for 11/01/2017

Global macro overview for 11/01/2017:

Another set of good economic data from the United Kingdom was released this morning. This time it was Industrial Production data that beat the market expectations of a 0.8% increase with a 2.1% figure (prior reading was -1.1%). Moreover, the Manufacturing Production surpassed the estimates as well with a 1.3% increase instead of the expected 0.6% gain. In conclusion, markets cheered upbeat data from UK industry. Please notice, that later today we will have NIESR GDP Estimate news, an unofficial estimate of UK GDP that comes out one month before the official release. Any figures better than 0.5% will be another reason for the British Pound appreciation.

Let's now take a look at the GBP/USD technical picture in 4H time frame. The pair is trading right at the technical support zone between the levels of 1.2113 - 1.2080 and the growing bullish divergence suggests a bullish bounce can happen any time soon. The next technical resistance is seen at the level of 1.2197.