Hello all,

This is my first post and I hope it finds you good.

I am following the UK economy news for sometime and I found that the news and information are not good with respect to their economy. Please follow some of my views. The reason I have mentioned that the economic outlook of GBP looks little worrying because of the following fact,

Manufacturing and Production sectors are struggling. Factories and Outlets are reducing the workers since September which means the unemployment rate is growing. On the other side, UK has increased the biggest pay hike last month whereas the unemployment continue to rise because of the manufacturing sector dullness which is a big bubble in employment rate and salary ratio. One such jobless incident is, last month SSI Redcar steel plant stopped it's production and 1700 workers will be unemployed.

About housing sector, the price is continuously climbing high. But there are also several criticism over the housing and mortgage sectors, that it's is failed to meet the housing requirements of common people. Also two days earlier, there was a statement from UK banking sector about Household sector problems and financial downturn risk because of Mortgage debt and Chinese market downfall.

Considering all the above information, it is evident that UK economy is in some sort of bubble which is about to explode, or at the least these negative factors is expected to slow down the economy in shorter term.

Moreover, the technical readings are showing not only bearish outlook but a short term downtrend possibility. Please find below the GBPUSD Daily chart,

Please find the GBPNZD Daily chart as well,

As I mentioned in the chart, the OBV (On Balance Volume) also reflecting a potential down trend.

To summarize everything, UK economy outlook is definitely looking bearish for short term by the least and I am expecting it to be in downtrend for at least next 2-3 months. And moreover, if Chinese market creates a global downfall, UK will be the biggest loser.
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