[VIDEO] Poor UK data, but does it matter?

GBP/USD appears to be in the process of forming the right shoulder of an inverted head and shoulders pattern


Earlier today, the UK released Industrial Production and Manufacturing Production for January.  Industrial Production was -1.5% MoM vs an expectation of -0.6% and +0.2% in December.  Manufacturing Production was -2.3% MoM vs an expectation a -0.8% and +0.3% in December.

On a 240-minute timeframe, GBP/USD has been in an upward sloping channel since early February.  The pair appears to be in the process of forming the right shoulder of an inverted head and shoulders pattern, but only a break above the 1.4000 neckline will confirm.  The target is near the February highs at 1.4240.

Everything you need to know about the Bank of England

With hints from BOE officials that the central bank may be on the less dovish side next week, while hints from Fed officials that they may be on the more dovish side, a break above 1.4000 could see GBP/USD move to its target in a hurry!

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