UK manufacturers maintained their bright start in March. The ongoing expansions in both production and new orders gathered pace, leading to a further rise in workforce numbers. The seasonally adjusted Markit/CIPS Purchasing Managers Index climbed to an eight-month high of 54.4 in March, ticking higher from 54.0 in February. The PMI has remained above the neutral level of 50.0 for 24 consecutive months for now.
Upcoming events: Traders eye on the UK construction PMI.
The cable made a double top at yesterday's session, managed to close with marginal gains. It's been making lower lowers for 3 days.The trading pattern has been framed between 1.5000 and 1.4740. Today, the British pound is trading higher against USD ahead of the data releases from the US and UK. At yesterday's session, we recommended selling with sl 1.4925 with targets at 1.4815, 1.4750, 1.4720, and 1.4690. The cable made a low at 1.4740 and changes the direction. In the H4 chart, prices are forming lower lows and lower highs. Until the price closes below 1.5000, gates are open for 1.4660 on the down side. Intraday support is seen at 1.4800 and resistance is seen at 1.4850 and 1.4875. We can expect strong upswing only above 1.5000 in case the price closes above on a daily basis. Eventually, the pound looks weak against USD ahead of political drama. UK is slowly approaching its general election scheduled for May. Market participants expect the pound to get under a downward pressure. We recommend selling below 1.4800 with targets at 1.4770, 1.4750, 1.4720, and 1.4690.Trade: Selling below 1.4800
Trade: Buying sl 1.8654
Uitgevoerd door, Analytische expert
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