In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the GBPUSD for 2nd April 2024.
Key Takeaways
- UK March PMI Data: Recently, market expectation for rate cut from Bank of England rose significantly, with anticipation of first cut to be initiated by May 2024. UK will be releasing its Manufacturing PMI later today which could clarify the forward guidance from the central bank.
- Strong US ISM Index: Yesterday, Institute for Supply Management (ISM) reported that US Man Manufacturing sector grew more than expected. Following the release of the data, market expectation for a rate cut by the Federal Reserve reduced to 65 basis points, well below the Fed’s estimation.
Technical Analysis
Daily Chart Insights
- Stochastic oscillator: The indicator forms bearish signal near the oversold region, which we suggest exercising caution and wait for more signal.
- Support Line: The pair tested near the strong support of 1.2507 for the past periods, each failing to break below. For the time being, if the pair successfuly closes below the support, we may expect further downside ahead.
1-hour Chart Analysis
- Stochastic Oscillator: The indicator begins to form bullish signal near the oversold region, potentially forming divergence at the bottom, which suggest bullish bias for short-term.
- Down Channel Line: The pair fluctuates during Asian trading session, with the pair approaching the upper boundaries of the channel. For short-term look forward for its price action within the channel to gain more signal.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 1.2575,
- Bullish Scenario: Bullish sentiment prevails above 1.2575, first target 1.2600, second target 1.2625;
- Bearish Outlook: In a bearish scenario below 1.2575, first target 1.2525, second target 1.2500.
Conclusion
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Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
