The British pound (GBP) is climbing against the US dollar (USD) this morning, despite the pair’s recent rise. The UK has declared new sanctions against Russia.

A year after Russia committed war crimes in Bucha, Ukraine, the UK has announced new sanctions. Reuters reports that the UK government has banned all new foreign investment into the country. Sberbank and Credit Bank of Moscow, which together control over one-third of Russia’s total banking assets, have also had their assets frozen by the UK.

GBP/USD needs to close above 1.3150 and start using it as support to turn bullish. That would make 1.3200 (psychological level) and 1.3250 (Fibonacci 38.2% retracement) the next objectives for recovery.

The impending UK releases may not appreciate the GBP/USD pair’s positive momentum. As of April 11, 2022, National Statistics will provide Manufacturing Production. Economists say it fell to -0.9% in February from 0.8% a month earlier.

Productivity, which accounts for a large portion of the GDP, is measured. A high GBP reading is bullish, whilst a low GBP reading is bearish (or bearish).

Second is industrial production, which economists predict will fall by 0.4% in February compared to the previous month’s 0.7%.

Changes in industrial production reflect the manufacturing sector’s health. For the GBP, a high reading is bullish, while a low value is bearish.

Conclusion

After a Doji candlestick last week, sellers rebounded this week, sending GBP near two-week lows. The Fed and BOE’s differing monetary policy outlooks weighed on the pair, as did a halt in the bond sell-off. A quiet week ahead will refocus attention on the Ukraine issue and central bank expectations.