24.03.201504:40 Forex Analysis & Reviews: Technical analysis and trading recommendations on GBP/USD for March 24, 2015

Long-term review

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The UK industrial order estimate unexpectedly idled in March and hit a 5-month low. The data produced a pessimistic view on UK's economy before the elections in May. The UK is slowly approaching its general election scheduled for May. Market participants expect the pound to get under a downward pressure. At yesterday's session, the cable managed to offset most of its losses, but closed marginally red. Today, again the cable opened on a bearish note. The price has been making distribution at 1.5010. A lower high is being formed on the daily chart. Parallel resistance is found at 1.5035. We recommend strong buying only above 1.5035 towards 1.5100. We advise the bearish view again. Eventually, the pound looks weak against the USD ahead of the political challenge. Intraweek support is seen at 1.4830. The safe selling game will start below 1.4830 towards 1.4720 and 1.4690 initially. The panic will be triggered below 1.4635. We can conclude the near term was capped at 1.4990 in case the pair closes below 1.4830. Today, traders eye UK CPI year-on-year, PPI input, and core CPI. The UK macroeconomic calendar offeres a day full of heavy-duty data along with US. We expect the CPI data will again turn out below expectations. For an intraday view, we recommend speculative selling below 1.4920 with targets at 1.4890 and 1.4830. If holding below 1.4830, panic will be triggered towards 1.4730.

Trade:

Buying above 1.5035.

Selling below 1.4920.

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