Weekly Technical Outlook: GBP/USD;Market Forecasts for May 1st – May 6th

• Resistance level 1.46671
• Pivot Level 1.45715
• Support Level 1.43402, 1.42441, and 1.41359

Technical Analysis

Daily bias in GBP/USD remains bearish with 1.4667 resistances intact. A deeper decline is expected for the pair as long as resistances holds the area. The price action stays below resistances so far at this point and such a decline is viewed as a correction. Thus, we’d expect resistance to hold the area and the pair remains bearish with a break of 1.4551 indicating a near term bearish reversal to take place.

Outlook continues to look with the downside bias where the price action signals a doji, indicative of a reversal bearish movement with rejection at resistance area closing below the trend line. The stochastic oscillator is currently at 84.0 levels and the pair closed below the rejection of trend line clearly indicating a trend reversal shifting the momentum.

Current development suggests that the medium term downside is expected for a further low and focus shall be at 1.4309. A break here should make lower lows with 1.41986 and later at 1.412

Economic

• Markit Manufacturing PMI, PMI Construction,
• BRC Shop Price Index, Halifax House Prices for the British
• ISM Manufacturing PMI, ISM Prices Paid, FOMC Member Williams speech
• FOMC Member Mester speech ADP Employment Change, Trade Balance.
• ISM Non-Manufacturing PMI, Nonfarm Payrolls, Unemployment Rate

Area of Interest

• Strong resistance at 1.46671 area and closed below resistance levels.
• Bearish reversal strongly closing below the rejection of trend line with doji at the end of week.
• Price action closed below trend line and oscillator below 84.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

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