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GBP/USD : Bullish momentum stalled despite upbeat UK manufacturing PMI

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The bullish momentum in the GBP/USD appears to have run out of steam despite the UK manufacturing PMI showed a faster-than-expected expansion in January.

    Stalls near 1.4310

    Sterling was trading above 1.43 ahead of the data and extended gains by a few pips to 1.4316 after the PMI figure bettered an estimated drop to 51.8 from 52.1 by printed at 52.9. However, the bullish momentum stalled and the pair fell back to trade around 1.4300 levels. Moreover, a sharp drop in the consumer credit may have been the reason behind the loss of momentum.

    The spot now waits the US personal spending and income report, which will be followed by the US ISM manufacturing PMI.

    GBP/USD Technical Levels

    The immediate support is seen at 1.4287 (5-DMA), under which the pair could drop to 1.4256 (10-DMA). On the other hand, a break above 1.4316 could see the pair re-test 1.4351 (23.6% of 1.5230-1.4074).
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