Pound dollar exchange rate (GBP USD) forecast: "On the Fence Again I'm Afraid"
- Written by: Gary Howes
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The pound dollar exchange rate is offering short-term currency traders little by way of solid signals at present.
The pound dollar exchange rate has today come under pressure owing to the release of some below-par services sector data.
Indeed, the entire GBP exchange rate complex is under pressure this morning.
Forecasts do however suggest the outlook for the GBP to USD is positive. However, making a clear-cut trade recommendation remains challenging.
The team at FuturesTechs issue the following morning trade recommendation:
- Short Term Trend: Bullish
- Medium Trend: Bullish
- Candlestick Chart says: Another reversal yesterday; a Shooting Star, but we’re still above 1.6600-06 so the bulls still look favourite.
- Profile Charts says: 1.6633 is “Value” for now. Volume 2thins out” below 1.6600.
- Summary: Looks like it wants to go higher but the reversal candles disagree and make for a mixed outlook so I’m on the fence again I’m afraid.
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US dollar today
Looking at the US dollar exchange rate complex, firmer than expected factory orders and a decent ADP print accompanied by an upward revision to the February number helped USD gains yesterday.
The ADP employment report somewhat supports market expectations of a decent payrolls print on Friday.
"However, the employment component of the manufacturing ISM survey slipped in March to 51.1, suggesting manufacturing employment grew at a slower pace than in February," say Lloyds Bank Research.
Non-manufacturing ISM will be a focus this afternoon; market is expecting a rise to 53.5. The manufacturing survey released earlier this week was slightly weaker than expected.
"A similar downside surprise today will unlikely prompt much market reaction; however, the key focus will be on the employment component which fell sharply to 47.5 in February," say Lloyds.