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GBP/USD sees little action after US PMI data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    A weaker-than-expected US preliminary PMI manufacturing data is doing little to weaken the USD, leaving the GBP/USD largely unaffected near its daily lows.

    Awaits Fed speak

    British Pound suffered a double blow of terror led risk aversion and Brexit fears throughout the European session. A failed attempt in early US to move back above 1.43 ended up sending the down by another 100 odd pips to 1.4204 levels.

    Selling pressure just refuses to stall despite US PMI manufacturing for March missing estimate by printing at 51.9. Traders now await Richmond Fed manufacturing activity index, which will be followed by Fed’s Evans speech.

    GBP/USD Technical Levels

    The immediate hurdle is seen at 1.4255 (38.2% of 1.3835-1.4515), above which the spot could make another attempt to take out 1.43 levels and test resistance at 1.4338 (38.2% of 1.4053-1.4515). On the other hand, a breakdown below 1.42 would expose support at 1.4175 (50% of 1.3835-1.4515) and 1.4139 (Mar 15 low).
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