Great Britain Pounds / Us Dollar pair rallies down as speculated in our previous analysis. This is as a result of positive economic data outcome, released on USD via consumer confidence, and Manufacturing index.
Will the pair rally back up or break down through the support of the symmetrical triangle? let’s find out.
Economic Event On GBP
This measures the Level of a diffusion index based on surveyed purchasing managers in the manufacturing or production industry.
Outcomes above 50.0 indicate industry expansion while below indicates contraction. There are 2 categories of this report occasionally released about a week apart – Flash and Final.
The Flash release, which is the source first reported in Nov 2019, is the earliest and thus tends to have the most impact on the economy.
This is a Survey of about 650 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
It’s a leading indicator of economic health – businesses tend to react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.
It is Released monthly, around 3 weeks into the current month, if the ‘Actual’ result is greater than ‘Forecast’ then is good for the currency.
| Currency | Forecast | Previous |
| GBP | 57.2 | 57.8 |
Flash Services PMI:
Measures Level of a diffusion index based on surveyed purchasing managers in the services industry.
| Currency | Forecast | Previous |
| GBP | 58.6 | 59.1 |
GBP/USD
Economic Events on USD
Flash Manufacturing PMI
It measures the Level of a diffusion index based on surveyed purchasing managers in the manufacturing or production industry.
Normally outcomes above 50.0 indicate industry expansion while below indicates contraction. There are 2 categories of this report occasionally released about a week apart – Flash and Final.
The Flash release, which is the source first reported in Nov 2019, is the earliest and thus tends to have the most impact on the economy.
This is a Survey of about 650 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
It’s a leading indicator of economic health – businesses tend to react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.
It is released monthly, around 3 weeks into the current month, if the ‘Actual’ result is greater than ‘Forecast’ then is good for the currency.
| Currency | Forecast | Previous |
| USD | 59.3 | 58.4 |
This measures the Level of a diffusion index based on surveyed purchasing managers in the manufacturing or production industry.
| Currency | Forecast | Previous |
| USD | 59.1 | 58.7 |
Pair Observation
Firstly Great Britain Pounds – Us Dollar after our speculation that pair will sell which played out well, Has been making lower highs(LH) and lower lows(LL).
Secondly, The pair throughout the weeks after the speculation sold tremendously with an extension of 200pips after each pullback(LH).
Conclusion
Moreover, During the last trading week, we can clearly observe from the 4Hour chart that GBP/USD pair pulled back(LH) which is already an extension.
However Unlike earlier trading weeks, there was a good momentum due to the economic Events and some investors’ sentiments, this is an insight that the pair may likely change direction.
With the upcoming Economic events via Flash Manufacturing, Flash Services PMI GBP, Flash Services PMI USD.
The pair is expected to test the support level of the symmetrical triangle at 1.33000 resulting in a 200pips move from the pullback(LH) before a bullish reversal. Do you have any contributions or questions? our forum is open.
“Chinedu is a Trader and content writer, With a passion for educating others about the financial markets. Through his writing, he works tirelessly to share insights and knowledge gained from years of experience trading in the financial market. He is dedicated to helping others achieve success in their journey by providing valuable information on what works and what doesn’t.