Manufacturing data for the UK in April came in higher than expected. Here are the main points from UK's Office of National Statistics:Total production output is estimated to have increased by 1.6% in April 2016 compared with April 2015. There were increases in all 4 main sectors, with the largest contribution coming from manufacturing (the largest component of production), which increased by 0.8%. The largest contribution to the increase in manufacturing came from the manufacture of basic pharmaceutical products & pharmaceutical preparations, which increased by 12.5%, the largest rise since April 2009. Total production output is estimated to have increased by 2.0% in April 2016 compared with March 2016. There were increases in 3 of the 4 main sectors, with the largest contribution coming from manufacturing, which increased by 2.3%, the largest rise since July 2012. The largest contribution to the increase in manufacturing came from the manufacture of basic pharmaceutical products & pharmaceutical preparations, which increased by 8.6%, the largest rise since February 2014. In the 3 months to April 2016, production and manufacturing were 9.4% and 6.4% respectively below their level reached in the pre-downturn GDP peak in Quarter 1 (Jan to Mar) 2008. There is no impact on previously published estimates as no previous periods were open for revision. This is in line with the standard revisions policy for National Accounts. (Full Report on ONS)Economists had an average forecast for a flat month: (source: forexfactory.com) Industrial output, specifically the manufacturing component has been tepid in 2016 but the 2.3% month to month increase is the largest since July 2012. The pound was sliding ahead of the data in the context of a choppy market. Let's take a look at the EUR/GBP 1H chart. (click to enlarge)The 1H chart shows a bullish EUR/GBP (relatively bearish pound). Even after the 6/7-session dip, EUR/GBP maintains a higher-high, higher-low pattern. However, the 1H RSI falling to 30 suggests the start of bearish momentum. If the RSI fails to push above 60, it will reflect further development of this bearish momentum.It should be noted that today's manufacturing data is not a very relevant piece for the pound outside of the near-term, but it could create some support for the pound during the 6/8 session. I want to point out the intra-session range ahead and after the data release: 0.78-0.7840. I believe a break of this could dictate the rest coming 6/8-US session. In my opinion, if EUR/GBP stays under 0.7840, it has downside risk back towards 0.7750, where the tail of a 1H candle during the 6/7 session pivoted. Let's see if this positive data for the UK can help EUR/GBP continue this week's bearish correction theme. If EUR/GBP can chase the 6/7 session tail to 0.7750, there is further short-term downside risk towards the 0.7720 support pivot from 6/2 and 6/3. By that time, we can observe the EUR/GBP's reaction to the 200-hour SMA. If it manages to bounce off of it, we can still look for a bullish outlook in the short to medium-term. Otherwise, the prevailing medium-term bearish trend would still be on track with the test of 0.7640-0.7650 as the next short-term target before opening up the 0.7565 low and possibly even lower, towards the support/pivot area around 0.75 seen in the daily chart. EUR/GBP Daily Chart 6/8(click to enlarge)