GBP/USD undermined by weak PMI data
The GBP/USD was already weaker after the Bank of England kept rates unchanged at 5.25% as expected, in a "finely balanced" decision for some members on Thursday, which the market had interpreted as a signal that the first rate cut was going to come in August. Well, today, we had weaker-than-expected PMI data from the UK, which means that "balance" is shifting towards a cut on a marginal basis. Add to this, the ongoing election uncertainty in the UK, traders are happy to sit on the offer on the cable.
As a result, the GBP/USD has dropped to its lowest point since mid-May, testing potential support at 1.2635 at the time of writing. A more significant support to watch is at 1.2550 where the 200-day average meets a prior support/resistance zone. Resistances to watch include 1.2655, 1.2700 and 1.2735.
By Fawad Razaqzada, market analyst at FOREX.com
As a result, the GBP/USD has dropped to its lowest point since mid-May, testing potential support at 1.2635 at the time of writing. A more significant support to watch is at 1.2550 where the 200-day average meets a prior support/resistance zone. Resistances to watch include 1.2655, 1.2700 and 1.2735.
By Fawad Razaqzada, market analyst at FOREX.com
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.