GBP/USD at fresh session highs on weak US PMI data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The dollar selling gathered pace, pushing the GBP/USD pair to a high of 1.4367 after the Markit manufacturing PMI and ISM manufacturing PMI pointed to slowdown of activity in the US.

    Employment sub index dropped

    The ISM data revealed the sector shed jobs in December. The employment sub-index fell to 45.9 in Jan from 48.0 in December. A few minutes ahead of the data, the Markit manufacturing PMI also missed estimates but remained above 50.00.

    On the other hand, ISM PMI beat estimates, but remained below 50.00, highlighting contraction in the activity. The pair is now trading above 1.4351 (23.6% of 1.5230-1.4079).

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4413 (Friday’s high), above which the gains could be extended to 1.45 levels. On the other hand, a break below 1.4351 (23.6% of 1.5230-1.4079) could see prices slide to 1.43.
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