GBP/USD – Pound Lower Despite Steady UK Manufacturing Data

The pound has posted losses on Monday, as GBP/USD trades in the low-1.50 range. On the release front, British Manufacturing PMI improved to 53.0 points. In the US, the ISM Manufacturing PMI continued to soften, slipping to 53.5 points.

British Manufacturing PMI rose to 53.0 points in January, up from 52.5 points a month earlier. This was very close to the forecast of 52.9 points. It was a different story in the US, as Manufacturing PMI slipped for a third straight month. The index dropped to 53.5 points in January, short of the forecast of 54.9 points. Despite the weak US numbers, the dollar has posted moderate gains against the pound, which is struggling to stay above the symbolic 1.50 level.

On Friday, US Advance GDP for Q4 disappointed, posting a gain of 2.6%. The markets had anticipated a gain of 3.0%. Still, market sentiment towards the US economy remains positive, underscored by the Federal Reserve statement last week, where the Fed noted solid growth in the economy. The Fed remains on track to raise rates later in 2015, and the dollar will likely benefit as speculation continues over the timing of a rate hike.

GBP/USD for Monday, February 2, 2015

GBP/USD February 2 at 16:25 GMT

GBP/USD 1.5021 H: 1.5087 L: 1.5005


GBP/USD Technical

S3 S2 S1 R1 R2 R3
1.4781 1.4873 1.5008 1.5165 1.5282 1.5392


  • GBP/USD showed little movement in the Asian session. The pair lost ground in the European session, testing support at 1.5008. The pair is stable in North American trade.
  • 1.5008 is a weak support line. Will it break in the North American session? 1.4873 is stronger.
  • 1.5165 remains a strong resistance line.
  • Current range: 1.5008 to 1.5165

Further levels in both directions:

  • Below: 1.5008, 1.4873, 1.4781 and 1.4670
  • Above: 1.5165, 1.5282, 1.5392, 1.5505 and 1.5642


OANDA’s Open Positions Ratio

GBP/USD ratio is pointing to gains in long positions on Monday. This is not consistent with the pair’s movement, as GBP/USD has recorded losses. The ratio is has a majority of long positions, indicative of trader bias towards the pound reversing directions and moving to higher ground.

GBP/USD Fundamentals

  • 9:30 British Manufacturing PMI. Estimate 52.9 points. Actual 53.0 points.
  • 13:30 US Core PCE Price Index. Estimate 0.0%. Actual 0.0%.
  • 13:30 US Personal Spending. Estimate -0.1%. Actual -0.3%.
  • 13:30 US Personal Income. Estimate 0.2%. Actual 0.3%.
  • 14:45 US Final Manufacturing PMI. Estimate 54.1 points. Actual 53.9 points.
  • 15:00 US ISM Manufacturing PMI. Estimate 54.9 points. Actual 53.5 points.
  • 15:00 US Construction Spending. Estimate 0.9%. Actual 0.4%.
  • 15:00 US ISM Manufacturing Prices. Estimate 40.1 points. Actual 35.0 points.

*Key releases are highlighted in bold

*All release times are GMT


OANDA MarketPulse Nominated for FXstreet’s 2015 Forex Best Awards

We are pleased to share the news that FXstreet – Europe’s oldest forex trading portal, published online in more than 50 countries – has nominated your MarketPulse team for the “Best Sell-Side Analysis Team” award again this year (the winners in 2014!), as well as in the category of “Best Analysis”.

The annual Forex Best Awards highlight the best analysis, educational content, and contributors on its website from the preceding year. It is a tremendous honour to be considered for this industry accolade out of the thousands of top tier banks and financial blogs online.

However, in order to win these important awards, we need your help – we need you to vote for us.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.