FX.co ★ Technical analysis and trading recommendations on GBP/USD for March 03, 2014

UK manufacturing PMI rises to a 7-month high. The growth rate of the UK manufacturing sector continued to strengthen at the start of 2015. The seasonally adjusted Markit/CIPS PMI rose to a seven-month high of 54.1 in February, up from 53.1 in January. Today, traders eye Carney's speech and construction PMI data. We are bullish for the British pound against crosses, but still remain cautious about the US dollar. From the technical view, the cable closed marginally higher last week. Technically, the cable was rejected from 20Wsma and 100Dsma last week. The cable has been improving the support base from the lows 1.4951. If we look at the daily chart, prices are moving up and consolidating, again pushing to a new high with consolidation. This time, the price is consolidating in the crucial support zone. We can find a strong support base between 1.5350 and 1.5315, last hope at 1.5280 or 50Dsma. The intraday resistance is found at 1.5350. We recommend selling below 1.5350 with targets at 1.5330, 1.5315, and 1.5280. Bulls can challenge 1.5500 and 1.5560, in case the price closes above 1.5480. The near- and medium-term trend will turn to positive, in case the price closes above 1.5500 on a weekly basis.

Resistance: 1.5380, 1.5420, 1.5460.

Support: 1.5350, 1.5330, 1.5280.

From the above analysis, we recommend you:

selling below 1.5350.

Buyers: buying between 1.5316 and 1.5300, sl 1.5280.

Risk lovers: buy with sl 1.5350.