GBP/USD: the US dollar regains its leadership in the pair
Current trend
The GBP/USD pair shows a downward trend, trading around the level of 1.4086.
GBP grows against the background of the improvement in the epidemiological situation in the UK. Macroeconomic statistics are also fairly stable. May Composite PMI rose to 62.9 points from 62.0 points for April. Service PMI for May reached 62.9 points, which is higher than the previous figure of 61.8 points. However, there is also a negative factor: the volume of mortgage lending has significantly decreased. Back in early spring, this figure was 11.52B pounds, and according to April data, it reached only 3.30B, which may indicate a sharply falling attractiveness of mortgage loans for the population.
This week, USD Index received significant support after yesterday's labor market data release and reached 90.500. The most significant growth was shown by the non-agricultural sector, where the number of jobs for May increased to 978K from 645K for April. 385K people applied for unemployment benefits, which is less than 405K a week earlier. After the publication of these data, the pressure on the US Federal Reserve System will increase significantly, and the volume of bond buybacks may be revised.
Support and resistance
The price left the limits of the local ascending channel and consolidated within a downward correctional trend. Technical indicators reversed to the sell state: fast EMAs on the Alligator indicator crossed the signal line downwards, and the AO oscillator histogram consolidated in the negative zone.
Resistance levels: 1.4164, 1.4300.
Support levels: 1.4030, 1.3850.
The GBP/USD pair shows a downward trend, trading around the level of 1.4086.
GBP grows against the background of the improvement in the epidemiological situation in the UK. Macroeconomic statistics are also fairly stable. May Composite PMI rose to 62.9 points from 62.0 points for April. Service PMI for May reached 62.9 points, which is higher than the previous figure of 61.8 points. However, there is also a negative factor: the volume of mortgage lending has significantly decreased. Back in early spring, this figure was 11.52B pounds, and according to April data, it reached only 3.30B, which may indicate a sharply falling attractiveness of mortgage loans for the population.
This week, USD Index received significant support after yesterday's labor market data release and reached 90.500. The most significant growth was shown by the non-agricultural sector, where the number of jobs for May increased to 978K from 645K for April. 385K people applied for unemployment benefits, which is less than 405K a week earlier. After the publication of these data, the pressure on the US Federal Reserve System will increase significantly, and the volume of bond buybacks may be revised.
Support and resistance
The price left the limits of the local ascending channel and consolidated within a downward correctional trend. Technical indicators reversed to the sell state: fast EMAs on the Alligator indicator crossed the signal line downwards, and the AO oscillator histogram consolidated in the negative zone.
Resistance levels: 1.4164, 1.4300.
Support levels: 1.4030, 1.3850.