Forex Market: GBP/USD daily outlook

During yesterday’s trading session GBP/USD traded within the range of 1.6619-1.6675 and closed at 1.6630.

At 7:44 GMT today GBP/USD was gaining 0.07% for the day to trade at 1.6640. The pair touched a daily high at 1.6646 at 7:05 GMT.

Fundamental view

Activity in United Kingdoms sector of construction probably increased in March, with the corresponding PMI coming in at 63.2. In February the index stood at 62.6. Readings above the key level of 50.0 are indicative of expansion in the sector. Higher than projected values would be supportive for the sterling. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the results from its monthly survey at 9:30 GMT.

Meanwhile, employment in United States private sector probably increased by 190 000 during March, following another job gain of 139 000 in February. The report by Automatic Data Processing Inc. (ADP) is based on data, encompassing about 400 000 out of 500 000 business entities with over 24 million employees engaged in 19 major sectors of the economy in accordance with North American Industry Classification System (NAICS). It usually comes out two days before the official employment report by the Bureau of Labor Statistics (BLS), thus, providing clues over the tendency in nations non-farming sector. In case employment increases more than anticipated, this would have a bullish effect on the greenback. The report is expected at 13:15 GMT.

Factory orders in the United States rose 0.8% in February, a monthly survey will probably reveal at 15:00 GMT. In January compared to December orders fell 0.7%. This indicator reflects current industrial activity in the country and also provides clues over sector development in the future. The survey is based on 89 different industrial categories, which are organized in 473 sub-groups. A larger rate of increase would be supportive for the US dollar.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/USD manages to breach the first resistance level at 1.6664, it will probably continue up to test 1.6697. In case the second key resistance is broken, the pair will probably attempt to advance to 1.6720.

If GBP/USD manages to breach the first key support at 1.6608, it will probably continue to slide and test 1.6585. With this second key support broken, the movement to the downside will probably continue to 1.6552.