On Thursday, the UK announced that its gross fixed capital formation for the 4th quarter was at £76.6 billion. These numbers were down 1.1% compared with the previous three months but rose by 2.1% from the level £75.0 billion of the same period in 2014.
The Office for National Statistics (ONS) pointed that the country’s GDP in the 4th quarter showed a brighter signal as betting the 0.5% expectation by standing at 0.6%. However, the current account deficit surged up to £32.7 billion account for 7% of GDP in the 4th quarter. This extended the negative impacts on the economic growth.
The Chartered Institute of Procurement Supply (CIPS) on Friday released the UK manufacturing PMI in March. The index was up to 51 from 50.8 in February. It did not meet the Bloomberg’s estimated reading of 51.2. The average for the first quarter in 2016 was approximately the lowest since 2003.Thus putting downward pressure on the pound. The UK FTSE 100 opened today’s trading session at 6,114.61. This was lower 1% from the last closed price.
Today, the green currency is fluctuating ahead of U.S. nonfarm payrolls report for March. This is due to the expectation of 205,000 jobs created last month. The dollar index DXY repaired the losses today, inching up to 94.55 from the five-month low, 94.27, in the last session. The market is waiting for a strong dynamic to surge up.
Fig. GBPUSD Technical Chart H4
Testing the resistance of 1.44619 on March 30, GBPUSD is declining slightly and about to approach the oversold territory as the stochastics shows. The two SMAs is getting closer, prepare to cross. If the SMA 14 (green line) lies under the SMA 21 (red line), the pair might follow a downtrend, entering the bearish market.
Buy Digital Put Option at 1.4135 and a Put Option for a test to 1.4054