Sterling bears out in force

sterling12iA worse than expected UK manufacturing production figure of -0.4% against a forecast of 0.1% (-0.4% was the figure in December) has given sterling bears a further excuse to sell the currency, with some really nice downtrends in a number of GBP pairs. In addition industrial production also followed a similar trend coming at -0.7% against a forecast of 0%, and declining further against last month’s number of 0.1%,

The data injected volatility into the sterling pairs, with volatility candles triggering in the faster time frames. Cable managed to find some minor support at 1.4458, before moving lower, and what is significant is that the hourly CSI is showing GBP as likely to be moving steadily lower, and we will have to wait for the US session to see if there is any halt to the current bearish momentum.