Forex Market: GBP/USD daily trading forecast

Fridays trade saw GBP/USD within the range of 1.5191-1.5025. The pair closed at 1.5189, gaining 0.87% on a daily basis.

At 6:53 GMT today GBP/USD was down 0.20% for the day to trade at 1.5158. The cross held in a daily range between 1.5153 and 1.5190.

Fundamentals

United Kingdom

The gauge of industrial orders in the United Kingdom probably improved to a reading of 4 in April, according to analysts expectations, after coming in flat a month earlier.

This indicator reflects the net balance between companies that registered an increase in industrial orders during the respective period and those that registered a drop. It is the oldest indicator, released from the UK private sector, to show the development tendency in the countrys industry. The Industrial Trends Survey by the Confederation of British Industry (CBI) provides expert qualitative opinion from senior manufacturing executives, on past and expected trends in output, exports, prices, costs, investment intentions, business confidence and capacity utilization. A level above zero suggests that volume of orders is projected to increase, while a level below zero indicates that expectations point to lower volumes. If the survey showed predominant optimism, this would have a limited bullish effect on the sterling. The CBI will announce the results from its survey at 10:00 GMT.

United States

Activity in the US sector of services probably grew faster in April from a month earlier, with the months preliminary reading expected to show growth of 59.5 from Marchs final value of 59.2. If confirmed, this would be the fastest pace of expansion since August.

The PMI is based on data collected from a representative panel of more than 400 private sector companies, which encompasses industries such as transport and communication, financial intermediaries, business and personal services, computing & IT and hotels and restaurants. Values above the key level of 50.0 indicate optimism (expanding activity). Higher-than-expected PMI readings would support the US dollar. Markit Economics will release the report at 13:45 GMT.

Pivot points

According to Binary Tribune’s daily analysis, the pair’s central pivot point stands at 1.5135. In case it penetrates the first resistance level at 1.5245, it will encounter next resistance at 1.5301. If breached, upside movement may attempt to advance to 1.5411.

If the cross drops below its S1 level at 1.5079, it will next see support at 1.4969. If the second key support zone is breached, downward movement may extend to 1.4913.

In weekly terms, the central pivot point is at 1.5078. The three key resistance levels are as follows: R1 – 1.5302, R2 – 1.5416, R3 – 1.5640. The three key support levels are: S1 – 1.4964, S2 – 1.4740, S3 – 1.4626.