GBPUSD Forecast Feb 03-07

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Recommendations: LONG positions above 1.6497 with 1.6620 & 1.6670 as next targets.

Alternative scenario:The downside breakout of 1.6400 will open 1.6300/1.6260 levels

Description: Outlook in GBPUSD is neutral this week , resistance is at 1.6497 levels , break of this level will recapture the 1.6670 levels ,above 1.6670 would open 1.6745 next , further out will aim the 1.6800 levels. On the downside , support comes at the 1.6400 levels , losing this level on a daily basis will extend losses to the 1.6300 levels , below 1.6300 will turn focus on the 1.6260 levels.

Support & Resistance :1.6130 , 1.6170,1.6260 , 1.6300 ,1.6400(Pivot)1.6497 (Pivot) , 1.6620 , 1.6670 , 1.6745, 1.6800

Key data/events which may influence GBPUSD  this week:
  • Manufacturing PMI .Monday at 09:30 GMT .The Manufacturing Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below 50 indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance. Last read 57.3 .Forecast 57.1 .Market Impact :A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.
  • Construction PMI .Tuesday at 09:30 GMT .The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers in the construction industry. A reading above 50 indicates expansion in the construction industry; a reading below indicates contraction. It gives an indication about the health of the construction section in the UK. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance. Last read 62.1 ,Forecast 61.5 .Market Impact :A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.
  • Services PMI .Wednesday at 09:30 GMT .The Services Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the services sector. A reading above 50 indicates expansion in the sector; a reading below 50 indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.Last read 58.8 ,Forecast 60.0 .Market Impact : A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.
  • Interest Rate Decision .Thursday at 12:00 GMT .Bank of England (BOE) monetary policy committee members vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.Last rate 0.5% ,Forecast 0.5% .Market Impact : A higher than expected rate is positive/bullish for the GBP, while a lower than expected rate is negative/bearish for the GBP.
  • Manufacturing Production (MoM) .Friday at 09:30 GMT .Manufacturing Production measures the change in the total inflation-adjusted value of output produced by manufacturers. Manufacturing accounts for approximately 80% of overall Industrial Production. Last read 0.0% ,Forecast 0.6% . Market Impact :A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

For US events read : U.S.ECONOMIC EVENTS Feb 03-07

Live Chart Of GBPUSD

 

GBPUSD Daily Chart

GBPUSD Forecast Feb 03-07

MARKET DATA

UPCOMING ECONOMIC EVENTS