GBP/USD Moves Closer to Uptrend Line as Forecast for US Manufacturing PMI Remains High

GBP/USD – Technical Analysis for Forex Trading & CFDs.

United States – Institute for Supply Management (ISM) Manufacturing PMI

On Monday, at GMT 2:00 p.m., the Institute for Supply Management will release its manufacturing PMI figure for the United States. The ISM’s US manufacturing PMI measures the level of a diffusion index based on a survey of 400 purchasing managers.

Purchasing managers in the United States are involved in the supply side of the economy. As most companies reduce their expenses and production based on their sales forecast, the survey of purchasing managers reveals the overall optimism of various companies in the country. Hence, Forex investors can easily figure out the sentiment regarding the economic condition in the country from the ISM manufacturing PMI readings.

Last month, the ISM manufacturing PMI for the United States came out at 60.8. The forecast for this month is set at 60.1.

United Kingdom – Manufacturing PMI

On Tuesday, at GMT 8:30 a.m., the Markit released the United Kingdom’s manufacturing purchasing managers’ index (PMI) figure. It measures the level of a diffusion index by surveying around 600 purchasing managers in the country.

Businesses are the first to react to changing economic climate. The PMI reading derives from survey questions covering employment, production, price levels, new order situations as well as inventory conditions. Hence, Forex traders consider this data to be a leading indicator of the overall economic health of the country.

Last month, the UK’s manufacturing PMI came out at 55.2. The forecast for this month is set at 54.8.

GBP/USD Forecast

The GBP/USD climbed up by around 2330 pips over the last year. The bullish momentum accelerated over the last few months as it formed a well-respected uptrend line. However, after reaching the 1.4250 level, it found a strong resistance. Last week, the GBP/USD once again failed to close above the 1.4250 level and started a bearish retracement towards the uptrend line. Currently, it is trading just above the support near the 1.4020 level.

Analysts are expecting the UK’s manufacturing PMI to decline from 55.2 to 54.8 over the last month. On the other hand, analysts are expecting the ISM manufacturing PMI to remain above 60.0. We believe it would set a bearish fundamental outlook for the GBP/USD this week. Therefore, if the GBP/USD closes below the support near 1.4020, it would likely attract additional bearish momentum in the market.

Hence, Australian Forex traders should look out for trading opportunities below this major support level around 1.4020.

BTC/AUD Forecast

After finding resistance near the 12,000 level, the BTC/AUD started another bearish move. Over the last few weeks, the BTC/AUD climbed down to the 8,500 level, formed a downtrend line, and found a strong support.

Last week, news broke that 5 cryptocurrency exchanges in Japan have withdrawn their applications with the Japanese Financial Services Agency (FSA) to register their business. Hence, we believe that the the BTC/USD price may decline further in the coming week.

Under the circumstances, if the BTC/AUD breaks and closes below the support near 8,500, it will likely attract additional bearish momentum in the market.

Hence, Australian bitcoin traders should look out for trading opportunities below this major support level around 8,500.

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at

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