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    BRAND MARKET ANALYSIS AND NEWS GBPCAD Near Potential Sell Area Market News

    GBPCAD, 240 min

    UK manufacturing PMI beat forecasts earlier today, unexpectedly rising to a 52.9 headline reading, a three-month high and up from 52.1 in December. The median forecast had been for 51.8. The tick higher in the rate of expansion in the sector is encouraging as it came despite inclement weather and flooding, and global financial market turmoil. Markit, the compiler of the survey, reports that strength in domestic demand more than offset a dip in export orders. The domestic economy is being underpinned by a record high level of employment and robust property market.

    GBPCAD is trending lower in the 240 min chart but has rallied against the trend today. The rally has brought the pair near the upper end of the bear channel and the descending 30 period simple moving average. Momentum has been waning today after price briefly moved above the 38.2% Fibonacci level on the back of the positive PMI from UK numbers. This suggests that the buyers aren’t that committed to the long side.  We are looking for short entry signals inside the sell area between 38.2% and 50% Fibonacci levels (2.0062-2.0121) with the view of covering the shorts (at least partly) at the Target Area 1 (1.9890-1.9930). The second target area is at 1.9727-1.9768. Proximity of a weekly support level at 1.9850 is a risk and might mean that target 2 won’t be reached. If you don’t know how to identify sell signals, set stops or manage the risk properly, join in my Live Analysis Webinar.

     

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    Janne Muta

    Chief Market Analyst

    HotForex

    Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.


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