GBPUSD

GBP/USD pair is trading weak around 1.4330 today ahead of the UK manufacturing PMI release. Cable rose to a high of 1.4427 levels yesterday before falling back to 1.4368 and extending losses in Asia today. The decline from 1.4427 could be blamed to a release of poll of polls which showed sentiment is slowly shifting in favor of Brexit. The immediate focus now is on the UK manufacturing PMI release, which will be followed by US average hourly earnings and non-farm payrolls figure. (Trading the average hourly earnings report (Gold and GBP/USD) - Macro Scan )

Weak PMI figure could spell trouble for Pound

Consensus estimate calls for an improvement in the PMI index to 51.2 from Feb’s figure of 50.8. The CBI total trends survey released on March 21st showed the manufacturing sector is still in recession. Factory output fell over the three months to March at the fastest pace since September 2009 due to weak demand from foreign customers and depressed demand at home.

The total orders balance improve to a three-month high of -14% in March after falling back to a four-month low of -17% in February from -15% in January and -7% in December. Though there was slight improvement, the figure stayed in the negative.

Hence, the PMI could print in line with the estimates. However, a possibility of a weaker-than-expected PMI cannot be ruled out and that could trigger a drop in the GBP/USD pair. On the contrary, a strong PMI figure could push Cable back to 1.44 levels.

Technicals – Losses seen below 1.4330

  • Sterling’s rally from last week’s low of 1.4057 to 1.4426 levels resulted in a loss of momentum owing to which prices drifted lower to near 1.4330 (23.6% of 1.5930-1.3835) levels today.

  • Acceptance below 1.4330 is unlikely on the hourly chart, given the daily RSI stays above 50.00. Nevertheless, a drop could expose the rising trend line support seen on the hourly chart at 1.4265.

  • Conversely, a rebound from 1.4330 would expose 1.4390-1.44 handle. A violation there could result in a re-test of 1.4426-1.4475 levels.

  • Bullish invalidation is seen only below 1.4284 levels.

Check out Non-farm payrolls report and its impact on EUR/USD and USD/JPY -Nonfarm Payrolls Forecast

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD steady below 1.0800 after US PCE meets expectations

EUR/USD steady below 1.0800 after US PCE meets expectations

EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips.  Fed Chair Jerome Powell set to speak ahead of the weekly close.

EUR/USD News

GBP/USD hovers around 1.2620 in dull trading

GBP/USD hovers around 1.2620 in dull trading

GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.

GBP/USD News

Gold price sits at all-time highs above $2,230

Gold price sits at all-time highs above $2,230

Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.

Read more

Key events in developed markets next week

Key events in developed markets next week

Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.

Read more

Majors

Cryptocurrencies

Signatures