UK Manuf PMI preview: What to expect of GBP/USD?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Bali) - GBP/USD continues to trade at depressed prices, having dropped more than 500 pips since mid-December, currently at 1.4740, after a brief drive through 1.47 in today's Asian session.

    UK Manuf PMI up next

    Today's UK Manufacturing PMI is expected to come at 52.8, after a disappointing print of 52.7 vs 53.7 exp last month, which followed an upbeat result during November, when the data came at 55.5 vs 51.3 exp. The readings have been showing expansionary levels (above 50) since June 2013. The data has the ability to move the Pound anywhere between 20 to 40 pips, depending on divergence noted.

    GBP/USD technicals

    Valeria Bednarik, Chief Analyst at FXStreet, notes: "The daily chart shows that the price has fallen further below a strongly bearish 20 SMA, while the technical indicators maintain their bearish slopes near oversold territory, all of which supports additional declines."

    "In the 4 hours chart, the price is also well below a bearish 20 SMA while the RSI indicator hovers in oversold territory and the Momentum indicator aims higher, but below 100, pointing for some consolidation ahead of a new leg south" Valeria added.

    GBP/USD key levels

    Support levels, according to Valeria, can be found at 1.4740 1.4700 1.4660, while resistance levels may be taken at 1.4755 1.4790 1.4835.
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