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    Technical analysis and trading recommendation for GBP against USD & CAD for April 02, 2015

    GBP/USD

    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.

    Technical view:

    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
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    GBP/CADIn the previous week, the pair took support from 20Wsma and 100Dsma, managed to erase most of its weekly losses. This week, the parallel at 1.8654 helped the pair to hold the lows. The pair has been rejected at 20Dsma twice. In case if the weekly price closes below 1.8490 100Dsma, the medium term turns to bearish mode. UK is slowly approaching its general election scheduled for May. Market participants expect the pound to get under a downward pressure. This is a short week. Intraday support is founf at 1.8654. We recommend buying with the same targets at 1.8760 and 1.8800. We can expect intraday strong buying above 1.8760. Until the price closes above 1.8654, we can expect big moves ahead.

    Trade: Buying sl 1.8654

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    Uitgevoerd door, Analytische expert
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