FEBRUARY 2017 Forecasts GBP/USD Parity

When we look at the big picture of GBP/USD parity in the global forex market, we could have observed a strong negative trend since the beginning of last year. With starting of 2017, the starting point was at 1.2239 level. After that, we could observe a bit negative trend on the parity, so the price level decreased to 1.2130 level at the middle of January.

Industrial and manufacturing production in the United Kingdom rose well above expectations in November. Manufacturing production, which contracted in the previous month, increased by 1.3 % in November, while industrial production rose by 2.1 %, balancing the contraction experienced in the previous month. Trade figures give mixed signals. Export figures rose 27 billion Pounds due to the deterioration of the Pound side. However, this is shaded by the highest import figure of all time, 39.2 billion Pounds. Today, the financial stability report is also released by the United Kingdom Central bank. The Central Bank President Carney is expected to answer questions in the parliament about the report.

According to the latest announcement in the UK, industrial production rose by 2.0 % in November compared to the same period of the previous year. In addition to industrial production, which increased by 2.1 % on a monthly basis, production in manufacturing also gained momentum during the period in question. Both data are well above market expectation.

If we look at the GBP/USD forecasts for February, the parity may test under the level of 1.2000. According to the technical analysis experts on the global forex market, if the parity tests under the 1.2000 level, there could be a downward movement with the beginning of February. So, the support level will be so important for the traders who are making buying and selling transactions on GBP/USD parity. Finally, when we look at the upward direction of the parity, the resistance level will be determined as 1.2300 or 1.2400 according to the latest developments.