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GPB/USD forex signal - Markit Manufacturing PMI - 03 Apr 2018

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Markit will be releasing the monthly manufacturing PMI data for the UK today at 08:30 GMT. The data will cover the manufacturing activity in the UK for the month of March. According to the economists polled, manufacturing activity in the UK is forecast to fall to 54.7 during the month. This marks a modest decline in the index from 55.2 that was registered in February previously.

The UK's manufacturing PMI report could however surprise to the upside considering the fact that the UK and EU managed to clinch a transitory deal that will prepare the way for a smooth exit of the UK from the European Union. This is also expected to lift some uncertainty that has been plaguing the UK's economy and has hit investment hard.

Economic activity is expected to have picked up a bit and this increases the potential for a better than expected print in the manufacturing PMI report.

On the currency side, the British pound was also seen recovering from its previous losses with inflation also showing signs of easing. Combined, the above factors could potentially influence the manufacturing activity report that will be coming out today.

Based on the above, today's forex trading signal is GBPUSD. The currency pair was seen forming an inside bar on Monday and a breakout from Thursday's range could signal the near term direction in the currency pair. We expect that GBPUSD will breakout to the upside due to the bullish momentum and with price being supported above the 1.4000 round number level of support.

Therefore, we are looking to go long GBPUSD at 1.4050 targeting 1.4115 with stops at 1.4020. We expect a bullish upside breakout in GBPUSD as price action rallies to retest the recently breached support level at 1.4050 where resistance could be established and thus the currency pair could close higher on the day.

forex signal gbpusd 03 apr 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.