Sterling Remains Volatile Ahead of U.K.’s Manufacturing PMI Data, 30+ PIP Movement Likely; Feb 01, 2021

U.K. Manufacturing PMI

Today U.K. has scheduled to release final manufacturing PMI data at 0930 GMT/1500 IST. It’s a leading indicator of economic health – businesses react quickly to market conditions and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy. This data is derived via a survey of about 600 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. Above 50.0 reading indicates industry expansion, below indicates contraction.

Let’s see how GBP has reacted during the previous data release:

Jan 04:

Dec 01:

Technical View:

GBP/USD: The sterling falls sharply ahead of U.K.’s Final Manufacturing PMI data. The pair made intraday high at $1.3757 and low at $1.3694 mark. A sustained close above $1.3740 requires for the upside rally. Alternatively, current downside movement will check key supports too.

Key Resistances: $1.3740, $1.3762, $1.3802, $1.3844

Key Supports: $1.3690, $1.3640, $1.3622, $1.3600

Take a look and do trade wisely!
Good Luck