GBPUSD WEEKLY OUTLOOK; OVER +1700PIPS PROFIT TARGET

FUNDAMENTAL BEAM

GBP/USD was almost unchanged last week, as the pair closed the week at 1.6161. This week’s highlight is Manufacturing PMI. Here is an outlook of the events and an updated technical analysis for GBP/USD.

US employment and manufacturing numbers disappointed last week, but the dollar held its ground against the pound.

A Summary of major events during week

1. CBI Realized Sales: Monday, 11:00. This index is based on a survey of retailers and wholesalers and is a leading indicator of consumer spending. The indicator has risen impressively in recent months, and hit 34 points in August, its highest level since May 2012. The markets are expecting little change in the September release, with a forecast of 33 points.
2. BOE Chief Economist Spencer Dale Speaks: Tuesday, 13:20. Dale will speak at an event in London. Analysts will be looking for hints as to the BOE’s future monetary policy. A speech which is more hawkish than expected is bullish for the pound.
3. Net Lending to Individuals: Tuesday, 9:30. This indicator is closely related to consumer spending, since increased individual borrowing  means that consumer spending is increasing, which is crucial for economic growth. Net Lending rose in August to 1.6 billion pounds, matching the forecast. The markets are expecting a surge in September, with an estimate of 2.5 billion pounds. Will the indicator meet or beat this rosy prediction?
4. GfK Consumer Confidence: Thursday, 00:05. Consumer Confidence has been mired in negative territory, but has been showing steady improvement. The indicator rose to -10 points in August, its highest level since 2007. The upward trend is expected to continue, with the September estimate standing at -8 points.
5. Nationwide HPI: Thursday, 7:00. This house price index provides a snapshot of activity in the UK housing industry. The index rose to 0.9% in August, easily beating the estimate of 0.5%. The forecast for September stands at 0.7%.
6. Manufacturing PMI: Friday, 9:30. Manufacturing PMI is the major event of the week. The index continues to post readings above the 50-point level, indicating ongoing expansion in the UK manufacturing sector. The September release was down slightly, coming in at 56.7 points. This was shy of the estimate of 57.5 points. The forecast for October calls for more of the same, with an estimate of 56.5 points.

TECHNICAL BEAM

       Currently ranging between the range of 1.6231 and 1.6126; it almost seems the bullish trend is closing up on GBPUSD after prices consequently refused to break above the previous technical resistance. we expect this resistance to hold for this pair therefore forcing the it into a bearish wave for future market prices.

           Daily technical support expected for this bearish turn is put at 1.4825 while a weekly technical support is recorded to be 1.4374 or below. Target of over +1700 pips profit is anticipated for this bearish market.

NOTE: Price predictions produced by FibonacciPrice&PatternTrader may be affected by unforseen events like hurricane, earth quake, flood and other natural disasters consequently changing price patterns already predicted. Hence we advice strict adherence to money management techniques.

HAPPY TRADING