The cable has been gaining for the third day as well. The cable added 1% at yesterday's session after the BOE event. We mentioned "bullish trades after the event". The same happened at yesterday's session.
The UK manufacturing output decreased by 0.4% in April 2015 compared with March 2015. Total production output is estimated to increase by 0.4% in April 2015 compared with March 2015.
Technical analysis: At yesterday's session, the cable managed to close above 20, 200Dsma and 200Dema. We advise buying with sl 1.5170 with targets at 1.5440 and 1.5700. The level of 1.5440 turned to be support zone. In the daily chart, the bullish pattern extends higher targets above 1.6000. It is too early to recommend that, but readers should keep this in mind. This view will be erased in case the price closes below 1.5170.
Owing to lack of macroeconomic data, today is understandably a quiet day for the British pound. The trading pattern will be driven by the US data release. Ahead of the publication, the pound is trading lower against USD rejected at 200Dema. Intraday support is found at 1.5440 and 1.5400. We recommend bulls to buy above 1.5530 with targets at 1.5560, 1.5600, and 1.5630.
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