GBPUSD price forecast bullish after Markit UK manufacturing report
Technical Analysis Summary GBP/USD: Buy
| Indicator | Value | Signal |
| RSI | Sell | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(200) | Sell | |
| Fractals | Neutral | |
| Parabolic SAR | Buy |
Chart Analysis
The technical analysis of the GBPUSD price chart on 1-hour timeframe shows GBPUSD, H1 is rebounding toward the 200-period moving average MA(200) which is fallng itself. We believe the bullish momentum will continue after the price breaches above the upper bound of the Donchian channel at 1.3536. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 1.3436. After placing the order, the stop loss is to be moved to the next fractal low indicator , following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of -
UK’s manufacturing sector expansion slowed in September less than the flash estimate showed. Will the GBPUSD price rebound?
UK’s manufacturing sector expansion slowed less than the flash estimate said in September. Markit’s final report showed UK manufacturing PMI declined to 57.1 in September from 60.3 in August instead of flash reading of 56.3. Readings above 50.0 indicate industry expansion, below indicate contraction. This is bullish for GBPUSD.