On Friday 1st May at 9.30 am BST (GMT+1) local time the Manufacturing PMI Data for the UK is released. Although we see a digestion theme for Friday, this could give impetus for either a further corrective setback or a re-energized bull trend.
GBPUSD Bull Theme Intact, But Digestion Bias
The push this week through 1.5371, 1.5398, 1.5425 and 1.5459 resistance levels to hit 1.5500 maintains a bullish theme into early May.
The corrective setback and consolidation Thursday is likely to extend into Friday (and the UK holiday on Monday), but the strong rally from mid-April through the 18th March peak at 1.5164 has set a more bullish tone for May.
For Today: We see a neutral tone between 1.5270/55 and 1.5492/5500 (with a rebound bias)
- Break above 1.5492/5500 aims for 1.5552/69, which we would look to try to cap.
- Break below 1.5270/55 aims for 1.5174, which we would look to try to hold.
Short/ Intermediate-term Outlook – Upside Risks:
- We now see a more positive tone with the bullish threat through 1.5500.
- Above here targets 1.5552/69, 1.5620, 1.5786, 1.5826, 1.5879 and maybe 1.6000 into May.
What Changes This? Below 1.4911 eases bull risks; through 1.4854 signals a neutral tone, only shifting negative below 1.4566.
Momentum: The 8-day RSI, short-term momentum is rising and has scope to go still higher this week.
2 Hour GBPUSD Chart
Daily GBPUSD Chart
Forextraders' Broker of the Month
ForexTime (FXTM) is an award-winning platform that certainly has the feeling of being set up by people who know what they are doing. The firm demonstrates an understanding of what helps traders make better returns, and its success can be measured by the fact that it's doubled the number of clients it supports in recent years. The fact that the broker has grown to have more than two million accounts suggests it is getting things right for clients.