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Pound/Dollar: Awaiting Service PMI

Hourly

At the start of the European session on Tuesday, the GBP/USD was down due to the manufacturing PMI not reaching expectations. Then the rate hastened downwards for the euro due to a growth in the dollar rate. From 1.5359, the rate returned to session opening price after the manufacturing PMI data came out showing a fall in manufacturing orders.

Due to yesterday’s sharp bounce, on the daily the balance is tipped in favor of the buyers. Ideally we’d like to see a rebound to 1.5398 and then a growth to 1.5496. However, going off the daily, selling, not buying, the pound looks more appealing. It’s likely that the rate will fall as we wait for the service PMI. I expect to see the rate at 1.5360 at the American session.

Hourly Graph

Daily

On Monday a false break in the trend line took place. The line has now been corrected according to a 1.5496 maximum. The stochastic has flipped upside down. A triangle pattern has formed so I’m looking at the GBP falling to 1.5288.

Daily Graph

Weekly

The situation is unclear. I’m saying a break of 1.52 with a 1.5080 target.

Weekly Graph

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Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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