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GBP/USD testing highs near 1.3940, UK PMI eyed

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The GBP bulls are tightening their grip on the GBP/USD pair as we progress towards the early European trades.

    GBP/USD holds above 5-DMA support at 1.3910

    The GBP/USD pair trades 0.17% higher at 1.3939, retesting session highs reached at 1.3944 in mid-Asia. The cable defends mild gains as the turnaround in risk-conditions continues to provide support. Risk-on moods returned to markets and propped up the demand for higher-yielding currencies amid modest recovery in oil and stocks.

    The major, although struggles to extend higher as its widely expected that the upcoming UK manufacturing PMI report will disappoint markets and further supress the sentiment around the GBP, already dampened by lingering Brexit concerns.

    Meanwhile, markets digest Fed Dudley’s comments and await the US manufacturing PMI reports for fresh moves in the major.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.3970/1.4000 daily R1/ round number), above which 1.4032 (10-DMA) would be tested. On the flip side, support is seen at 1.3910 (5-DMA), below that at 1.3852 (Feb 26 Low).
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