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Pound Set For Growth

The actual movement coincided with the tipping point of the forecast, but not at the amplitude of the fluctuations. After a fall to 1.5150, the pound/dollar recovered to 1.5289 on the back of the UK services PMI and ADP report.

The UK April business activity index in the service sector stood at 59.5 (forecasted 58.6, previous 58.9).

April data from the ADP came out weaker than the market expected and thereby compounded worries that NFP numbers will also be low. The amount of work in the US private sector throughout April was 169,000 (forecasted 195,000, previous 189,000).

Downward impulses are around about 90 degrees (the Gann level). From 1.5289 the pair dropped to 1.5221 (45 degrees). What’s going to happen on Thursday? Taking into account the negative sentiments from the US about the forthcoming NFP release, I’m looking at a GBPUSD growth to 1.5313. Today the UK parliamentary elections will take place, but the results won’t be out until tomorrow. During this time it could jump up and return to the LB line like I’ve marked out in my forecast.

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