PMIs May Provoke Volatility Of GBP/USD
IFC Markets | Aug 03, 2015 09:53AM ET
On Monday (10:30 CET and 16:30 CET) two macroeconomic indicators are going to be released: Manufacturing Indexes in Great Britain and US correspondingly. These diffusion indexes are based on surveyed purchasing managers in the manufacturing industry. They tend to represent long-term data on business conditions including employment, production, new orders, prices, supplier deliveries and inventories. We suppose that a consequent release of monthly indexes may provoke a long term volatility of GBP/USD currency pair. For now, futures and options trading volumes approach resistance of 80,000 claims. Conservative traders may wait for the breakdown of this mark while looking for a new entrance point.
Price has approached triple top at 1.57036 mark - an upper side of a triangular zone. Its movement continuation is probably defined by bullish sentiments in frame of a rising trend. We may look for this breakdown while opening long positions. It should be remarked that a trend line is verified by ParabolicSAR and Donchian Channel lower boundary. So we may use the current fractal support for the risk limitation. RSI-Bars oscillator confirms the global upward tendency. However a price breakdown may be strengthened by crossing of oscillator resistance mark of 57%.
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