Forecast GBP / USD on 05.05.2016
According to research firm Markit and the Chartered Institute of Purchasing and Supply, the April index of business activity in the British construction industry taking into account seasonal changes recorded decline to 54.0 in March 52. It was supposed to see a decline to 54. In the US, data on the service sector have been published and ADP release on employment growth in the private sector. The first release came out at 55.7 vs. 54.7, while the second - 156 thousand vs. 196 thousand..
Tool touched the maximum value above 1.4760 area. Later quotes changed direction and began a rapid decline.
Sterling has lost the level of 1.4560, bottomed at 1.4480 area.
In the area of 1.4480 is the first support below - 1.4400. In the area of 1.4560 is the first resistance, above - 1.4670.
Price is located in the Ichimoku cloud and Chinkou-Span is below the price level. Tenkan-sen shows the downward movement and the Kijun-sen - the horizontal.
Histogram MACD is in the negative zone. The price is consolidating.
If decrease in pair will be developed, the level of 1.4400 is seen as the next goal. If quotes can be overcome 1.4400, 1.4320 then the road to become free. Do not hang up the prices dropped in the upward direction with the objectives to 1.4560 and 1.4670.
Source Fort Financial Services