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2 Apr 2014
GBP/USD back to 1.6640
FXStreet (Edinburgh) - After hitting fresh session highs near 1.6670, the GBP/USD is now deflating back to the area of 1.6645/40.
GBP/USD eases after PMI data
The initial positive risk sentiment helped to propel spot to session peaks, although the softer than expected services PMI (62.5 act. vs. 63.0 exp.) prompted the current correction lower. According to Emmanuel Ng, Strategist at OCBC Bank, “The March UK manufacturing PMI disappointed with a deceleration to 55.3, while a buoyant EUR-GBP also added background drag to the GBP-USD. Our near term orientation towards cable remains uncommitted with the 55-day MA (1.6573) and 1.6700 serving as immediate reference markers”.
GBP/USD levels to watch
The pair is now advancing 0.06% at 1.6641 with the immediate resistance at 1.6684 (high Mar.31) followed by 1.6719 (high Mar.13) and then 1.6745 (high Mar.10). On the other hand, a breakdown of 1.6620 (daily cloud top) would aim for 1.6613 (low Mar.31) and finally 1.6599 (low Mar.28).
GBP/USD eases after PMI data
The initial positive risk sentiment helped to propel spot to session peaks, although the softer than expected services PMI (62.5 act. vs. 63.0 exp.) prompted the current correction lower. According to Emmanuel Ng, Strategist at OCBC Bank, “The March UK manufacturing PMI disappointed with a deceleration to 55.3, while a buoyant EUR-GBP also added background drag to the GBP-USD. Our near term orientation towards cable remains uncommitted with the 55-day MA (1.6573) and 1.6700 serving as immediate reference markers”.
GBP/USD levels to watch
The pair is now advancing 0.06% at 1.6641 with the immediate resistance at 1.6684 (high Mar.31) followed by 1.6719 (high Mar.13) and then 1.6745 (high Mar.10). On the other hand, a breakdown of 1.6620 (daily cloud top) would aim for 1.6613 (low Mar.31) and finally 1.6599 (low Mar.28).