Data in Focus
Investors are hesitating to bet on either side of the market ahead of the major economic data release today. The Manufacturing PMI for the GBP is due later today, and the forecast is for 48.6 while the previous reading was 48.3. Traders will be paying close attention as this data could spur the BOE to unleash a new round of quantitative easing. The recent hopes for another round of QE were constrained by the recent GDP data which came in much better than anticipated.
GBP/USD M30" title="GBP/USD M30" width="1428" height="739">
Technical Analysis
The GBP/USD has clearly broken its resistance level on a 30 minute time frame, but the price is still respecting the upper line of the rising channel on the same time frame. The price action is also trading above its rising trend line (shown in dotted yellow line) with this channel. However, the RSI is suggesting that the bias could be to the downside, as there is a clear sign of deflection between the price action and the RSI.
Important Levels
Support Zone
1.5067-1.5020 Major
1.5212-.15190 Minor
1.5304-1.5278 Minor
Resistance Zone
1.5554-1.5510 Broken – not valid
1.5689-1.5648 Major
DISCLOSURE & DISCLAIMER: The Above Is For Informational Purposes Only And Not To Be Construed As Specific Trading Advice. Responsibility For Trade Decisions Is Solely With The Reader.
by Naeem Aslam