7 Apr 2015
GBP/USD lower despite strong Britain's PMI data – Growth Aces
FXStreet (Barcelona) - The Growth Aces Research Team reviews UK’s PMI release, and further maintains a long position on GBP/USD targeting 1.5000 levels.
Key Quotes
“Britain’s PMI surged to hit an eight-month high of 58.9 in March, up from 56.7 in February, pointing to a speeding up of overall economic growth in the first three months of 2015. The index suggests that Britain's GDP probably rose by a quarterly 0.7% qoq the first three months of 2015, up from 0.6% qoq growth in the fourth quarter last year.”
“PMI showed also that input cost inflation remained historically muted in May, despite evidence of rising wage pressures. A number of firms commented that the weaker EUR had dampened inflationary pressures during the month.”
“In our opinion the outlook on the GBP/USD is slightly bullish. However, the GBP is still under pressure of Britain's national election campaign and the uncertainty around the outcome of a vote that will take place on May 7. We stay long for 1.5000.”
“Resistance: 1.4981 (high Apr 6), 1.4995 (high Mar 26), 1.5008 (high Mar 19)”
“Support: 1.4812 (low Apr 3), 1.4775 (low Apr 2), 1.4742 (low Apr 1)”
Key Quotes
“Britain’s PMI surged to hit an eight-month high of 58.9 in March, up from 56.7 in February, pointing to a speeding up of overall economic growth in the first three months of 2015. The index suggests that Britain's GDP probably rose by a quarterly 0.7% qoq the first three months of 2015, up from 0.6% qoq growth in the fourth quarter last year.”
“PMI showed also that input cost inflation remained historically muted in May, despite evidence of rising wage pressures. A number of firms commented that the weaker EUR had dampened inflationary pressures during the month.”
“In our opinion the outlook on the GBP/USD is slightly bullish. However, the GBP is still under pressure of Britain's national election campaign and the uncertainty around the outcome of a vote that will take place on May 7. We stay long for 1.5000.”
“Resistance: 1.4981 (high Apr 6), 1.4995 (high Mar 26), 1.5008 (high Mar 19)”
“Support: 1.4812 (low Apr 3), 1.4775 (low Apr 2), 1.4742 (low Apr 1)”