GBP Down After a Great UK Manufacturing Report! A Buying Opportunity

The UK manufacturing report that was released earlier today was quite upbeat at first glance. It jumped from 56.6 PMI points to 58.2. This is a very decent number and it makes this sector the best performing one in the UK economy.

The surveying company Markit said that “new orders, employment and output grew at very fast rates.” Also, the investments goods and new orders picked up at the fastest pace since 1994. This shows that the manufacturing sector is doing pretty good at the moment, as the headline figure suggests.

That said, GBP pairs are considerably lower as the Pound retraced some of its recent gains. Well, this is a good opportunity to get a forex trade in one of these forex pairs.

GBP/USD looks tempting because:

1. The trend is still bullish
2. The hourly chart is oversold
3. The previous candlestick formed a doji
4. The 50 SMA (yellow) is providing support

GBP/USD is already starting to reverse higher.

All these technical indicators are bullish at the moment and the price has already started to reverse higher. Although, we already have two forex signals open, so we might not take this trade, but it’s a good opportunity if you want to take advantage of it.