Here is the key factor to keep in mind today for British Pound trades:
- UK Rightmove House Price Index: The UK housing market slowed down its expansion when it comes to increase in prices which have been on a steady rise. The Rightmove House Price Index increase by 1.0% monthly for March and posted an annualized gain of 5.4%. Forex traders can compare this to the increase of 2.1% which was reported in February and the annualized rise of 6.6%. Overall housing prices in the UK are in an uptrend and expected to continue which will support a stronger British Pound going forward. This morning’s report encouraged forex traders to buy the British currency and the GBPUSD moved higher during the early morning trading session.
Here are the key factors to keep in mind today for US Dollar trades:
- US Empire Manufacturing Index: The Empire Manufacturing Index, which covers the New York manufacturing sector, is expected to rise to 8.00 in March from the 7.78 which was reported in February. Forex traders should be cautious with regional reports which have been very volatile and known to come in below expectations over the past few reports. The US Dollar is set-up for a bearish surprise which could cause a weaker US currency towards the close of the trading session.
- Industrial & Manufacturing Production: Economists expect industrial production rose 0.2% in February while manufacturing production remained flat. Capacity utilization is expected to rise to 79.5%. Forex traders can compare this with the 0.2% increase in industrial production reported in January and the 0.2% increase in manufacturing production. Capacity utilization was reported at 79.4%. Should expectations be confirmed it will point to an overall weaker report and therefore a weaker US Dollar should be expected.
Should price action for the GBPUSD remain inside the 1.4750 to 1.4800 zone or breakout above it the following trade set-up is recommended:
- Timeframe: H4
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4775
- Take Profit Zone: 1.5350 – 1.5400
- Stop Loss Level: 1.4500
Should price action for the GBPUSD breakdown below 1.4750 the following trade set-up is recommended:
- Timeframe: H4
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4690
- Take Profit Zone: 1.4500 – 1.4540
- Stop Loss Level: 1.4750
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
