FX.co ★ GBP/USD. Forecast for August 5, 2013

On Friday, UK PMI Construction in July was better than expected, 57.0 vs. 51.5. It gained additional momentum from weak data on Non-Farm Payrolls in July (162K vs. expectations for 185K). As the result, the pound closed the day growing 170 points.

Today at 12:30 UTC+4 UK PMI Services in July is issued (forecast 57.1 vs. 56.9). At 18:00 UTC+4 US ISM Non-Manufacturing index in July is revealed, it is estimated to be 53.0 vs. 52.2 in June.

The expectations are mixed. From the technical point of view, the price is in considerable area of interjection of the levels on the daily chart, the level of Fibonacci 50.0% and 23.6%, built from different branches and red trend line. The price is support by the indicator balance trend line (red sliding). The growth is possible after the break of the Friday’s high, 1.5306 and the first resistance is the line of Kruzenshtern on the daily chart (blue sliding) 1.5333, then resistance of trend line on the H4 1.5358.

The drop of the price is possible after the break of balance line on the daily chart 1.5252, which is corresponding to the High of July 31; the bearish targets are 1.5222 and 1.5155.