GBPAUD To Test Resistance Near 1.7415 Amid Surging Manufacturing PMI in the UK

GBPAUD – Technical Analysis for Binary Options trading

Australia – Building Approvals

On Monday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the national month-over-month building approvals figure. It measures the changes in the number of approvals of new buildings.

A build permit indicates new construction work. It also suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, binary options Australia investors consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.

Last month, the building approvals figure increased by 5.5%. This month, the forecast was set at -1.4% growth. However, the actual figure came out slightly lower, at -1.5%.

United Kingdom – Manufacturing PMI

On Monday, at GMT 9:30 a.m., the Markit released the United Kingdom’s manufacturing purchasing managers’ index (PMI) figure. It measures the level of a diffusion index by surveying around 600 purchasing managers in the country.

Businesses are the first to react to changing economic climate. The PMI is calculated based on survey questions covering employment, production, price levels, new order situations as well as inventory conditions. Hence, GoMarkets traders consider this data to be a leading indicator of the overall economic health of the country.

Last month, the UK’s manufacturing PMI came out at 51.1. Analysts were expecting it come out at 51.6. However, the actual figure came out much better than expected, at 53.1.

GBP/AUD Forecast

GBPAUD Technical analysis for BinaryOptions Australia

Since making a new high on October 10, the GBPAUD remained in a strong downtrend. Over the last two months, the price fell by around 1500 pips. However, after reaching the 1.7200 level last week, it found a strong support. Currently, it is trading just below the resistance around 1.7415.

The UK’s manufacturing PMI came out much better than expected at 53.1. On the other hand, the Australian building approvals figure declined by -1.5% last month against a forecast of -1.4%. We believe it would set a bullish fundamental outlook for the GBPAUD this week. Therefore, if the GBP/AUD closes above the resistance near 1.7415, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 1.7415.

 

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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