Sterling Strengthens Ahead of U.K.’s Manufacturing PMI Results, 30+ PIP Movement Likely in GBP Parity; March 01, 2021
U.K. Final Manufacturing PMI
Today U.K. has schedule 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 indicates industry expansion, below indicates contraction.
Let’s see how GBP has reacted during the previous data release:
GBP/USD: The sterling trades marginally higher ahead of U.K.’s Manufacturing PMI data. The pair made intraday high at $1.3998 and low at $1.3926 mark. The H1 chart with triple EMA confirms bearish trend while a Day chart suggests the bullish trend in long run. The expected range for the parity will be $1.4050 to $1.3888 mark. A sustained close above $1.4010 on H1 tests key resistances while a consistent close below $1.3967 will check key supports too.
Key Resistances: $1.3998, $1.4034, $1.4086, $1.4120
Key Supports: $1.3888, $1.3856, $1.3815, $1.3750
Take a look and do trade wisely!