3 Apr 2014; GBPUSD

3 Apr 2014; GBPUSD

On Tuesday UK Manufacturing PMI is down, on Wednesday Construction PMI is down. Also the US non-farm employment change is positive. Overall the effect is a confirmation that the GU is on a down trend. Technical chart showed the CCI reverse and enter the daily BB(14, 0.9) - a good indicator in sync with the fundamental that GU is down.

Today we have UK service PMI at 1630 hrs SGT. According to forexcrunch which suggest the following

5 Scenarios

1. Within expectations: 50.0 to 56.0: In such a case, GBP/USD is likely to rise within range, with a small chance of breaking higher.
2. Above expectations: 56.1 to 60.0: An unexpected higher reading can send the pair well above one resistance line.
3. Well above expectations: Above 60.0. The likelihood of a sharp expansion is low. Such an outcome could prop up the GBP, and a second resistance line might be broken as a result.
4. Below expectations: 47.0 to 49.9: A reading below the 50-point level indicates contraction, and could push the pound below one support level.
5. Well below expectations: Below 47.0: A very weak reading could push see GBP/USD break through a second support level.

It will be a good sell at the resistance level, which are at 1.6660-1.6665. The next at 1.6690-1.6700.

Support at 1.6620-1.6630 and next at 1.6580.