However, beware of the large sell orders clustered in the 1.5150/1.5200 region. This is where the trend resistance now lies. Break higher would open the way for a rebound to 1.5500, but it’s clearly too early to discuss a bullish reversal.
Next week we’ll be watching the UK first-quarter GDP on Tuesday. Services and Manufacturing PMI indices showed a rebound over the past months, so some economists expect growth to accelerate from 0.6% in the fourth quarter of the past year. However, there is always room for bearish surprises.
GDP figures matter a lot one week before the May 7 election: strong reading could support Prime Minister David Cameron and his Conservative Party and decrease the market uncertainty. Polls remain unchanged for now: both Conservative and Labour parties were stuck on roughly 34% each.
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