GBP/USD ending week under pressure

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - The recovery of GBP/USD was capped below 1.5070 during Friday’s American session and dropped back toward the 1.5030 area. It reached a fresh low at 1.5029 and then bounced modestly to the upside.

    Cable is about to end the week under pressure trading slightly above the key area located around 1.5030 that offered support today and also earlier during November. A break below would expose 1.5000 adding pressure to the pound.

    GPB/USD: Will it hold above 1.50?

    So far GBP/USD is being able to end the week above 1.50. The short-term trend continues to favor the US dollar. Next week in the US, eyes lie on Janet Yellen’s speeches and particularly on the November employment report. These events are likely to move the USD across the board.

    In the UK, it will be a quiet week regarding data. The most relevant report is the PMI. On Tuesday will be the manufacturing and on Thursday the service sector. “We anticipate that manufacturing PMI, which is due on Tuesday, has declined in November from 55.5 in October to around 53. This should mainly be seen as a correction as the index made an oddly large jump from 51.8 in September to 55.5 in October (…) The reason we do not expect the index to jump all the way down again is that there usually is some degree of inertia in the index”, wrote analysts from Danske Bank.
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