The Confederation of British Industry (CBI) announced that its index of factory orders for the second consecutive month was 17 points, the highest since August 1988. The export orders index fell to 16 points from 20 points, but remained above the long-term average.The boom in the British industry is favored by two factors – the weakening of the British Pound exchange rate caused by Brexit voting and the revival of global trade. CBI reported that 14 out of 17 industries in December recorded higher orders than usual, and the demand was particularly strong in the automotive and mechanical industries.The CBI report coincides with other data sent by the BDO auditing company, which reported that British exports have been growing continuously for four months more than in other European countries, among others due to a weaker pound. This course is currently 11%. lower than before the Brexit referendum.
Let’s now take a look at the GBP/USD technical picture at the H4 time frame. The market bounced yet again from the technical support at the level of 1.3300 after the news was released and currently is heading back towards the golden trend line resistance around the level of 1.3415. The momentum indicator is still hovering around its fifty level, but it points to the north, so there is still a chance the market will test the resistance again.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Global macro overview for 18/12/2017