GBPUSD started this trading week with an upward gap and then declined below 1.5999, which was a fairly strong level of support. At the beginning of the European trading session the currency pair rallied up to this week’s high 1.6062.
The UK’s manufacturing PMI grew up to 52.1 points, thus exceeding the forecast. This is the highest level since May 2011. The UK’s Construction PMI increased up to 56.7, the best readings since July 2010. Retail sales gained 1.5% while Halifax HPI increased by 2.2%, which is the biggest gain since mid 2009. The UK’s Services PIM grew up to 55.3%.
However, GBPUSD suddenly dropped down to 1.5832 on Wednesday after the FOMC meeting minutes were published. The report revealed that the Fed Reserve was not going to continue its quantitative easing program in the near future.
Today GBPUSD keeps declining. The UK’s manufacturing production increased by 0.4%, thus matching the forecast. However, the manufacturing production output declined by 1.0%. As expected, the Bank of England left its bond purchases program unchanged and preserved the key interest rate at 0.50%.
Tomorrow British banks are closed. However, the release of the Us Non-Farm Payrolls report is scheduled for tomorrow. This index usually causes volatility hikes.
According to , the GBPUSD futures contract is close to the psychologically important level of resistance 1.6000. If the price breaks and consolidates above it, traders may go bullish GBPUSD.
The price is above 1.5824. once the support level is overcome, the next levels of support 1.5750 and 1.5520.
