FX.co ★ Intraday trading recommendations for GBP/USD for October 02, 2014

The UK manufacturing PMI came in at a 17-month low of 51.6, down from 52.2 in August. The cable made a broader top between 1.64 and 1.6410 and was rejected a couple of times at 20Dsma. In yesterday's session the pair took the support at the 80.0 fib level and parallel support at 1.6162, a low made on September 16th in the daily chart. In case of a break below this, it will find support at previous support at 1.6052 and crucial support, at 1.60 (50Msma), the 50.0 fib level from 1.4813 to 1.7192. The short-term trend will turn a complete bearish movement. Once the pair closes below 1.60, it can fall 150-300 pips easily.

Support: 1.6162, 1.6050, 1.60.

Resistance: 1.6260, 1.64-1.6410, 1.6530.

For an intraday view, the pair has been facing strong resistance at the 10-day descending trend line and the 2 months (2-month) descending trend line. The prices are closed below 12ema and 34hrsma. It represents the bearish signs for an hourly and intraday basis. The prices took support at 1.6162 and are looking to bounce back to the resistance levels around 12ema. The sellers will gain only below 1.6162 and bulls get a chance to mint money only above 1.6220 levels. The pair can fly above 1.62 towards 1.6220, 1.6250-1.6260 levels. Sellers can mint money to sell (selling) below 1.6160 towards 1.6120, 1.61 and 1.6050.

Buy above 1.6220 for targets at 1.6250-1.6260 and 1.6285.

Sell below 1.6160 target (for targets at) 1.6120, 1.61, and 1.6050.