Yesterday’s trade saw GBP/USD within the range of 1.4300-1.4440. The pair closed at 1.4322, edging down 0.08% on a daily basis, while extending the drop from April 20th. The daily high has been the highest level since March 30th, when a high of 1.4460 was registered. GBP/USD has lost a mere 0.06% of its value so far during the current month, following a 3.20% surge in March. The latter has been the steepest monthly advance since September 2013, when this major pair went up 4.36%.
At 6:35 GMT today GBP/USD was edging up 0.24% on the day to trade at 1.4356. The pair touched a daily high at 1.4367 at 5:50 GMT, overshooting the range resistance level (R3), and a daily low at 1.4314 during the early phase of the Asian trading session.
On Friday GBP/USD trading may be influenced by the following macroeconomic report as listed below.
Fundamentals
United States
Manufacturing PMI by Markit – preliminary reading
Manufacturing activity in the United States probably increased at a faster rate in April, with the corresponding preliminary Purchasing Managers Index coming in at a reading of 52.0, according to market expectations. In March the final seasonally adjusted PMI stood at 51.5, improving from a preliminary 51.4.
According to Markits statement: ”A faster increase in incoming new work and sustained growth of employment numbers were the main positive developments recorded by the survey during March. Latest data also pointed to stabilization in new export orders, following a slight fall in February. Manufacturers noted that generally improving global economic conditions had helped to offset some of the negative influence on export sales from the strong dollar.”
”Manufacturing companies indicated cautious inventory policies in March. Post-production stocks were broadly unchanged, as has been the case throughout 2016 to date. Stocks of inputs were reduced for the fourth month running and the rate of decline was the fastest since January 2014. Survey respondents linked this fall to relatively subdued output growth and heightened uncertainty about the business outlook. At the same time, growth of input buying was only marginal, following a reduction in February.”
Values above the key level of 50.0 indicate optimism (expanding activity). In case the flash manufacturing PMI showed a better-than-anticipated performance, this would have a moderate bullish effect on the US dollar. The preliminary PMI reading by Markit Economics is due out at 13:45 GMT.
Daily and Weekly Pivot Levels
By employing the Camarilla calculation method, the daily pivot levels for GBP/USD are presented as follows:
R1 – 1.4335
R2 – 1.4348
R3 (range resistance) – 1.4361
R4 (range breakout) – 1.4400
S1 – 1.4309
S2 – 1.4296
S3 (range support) – 1.4284
S4 (range breakout) – 1.4245
By using the traditional method of calculation, the weekly pivot levels for GBP/USD are presented as follows:
Central Pivot Point – 1.4210
R1 – 1.4333
R2 – 1.4470
R3 – 1.4593
S1 – 1.4073
S2 – 1.3950
S3 – 1.3813
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