Cable Seems Vulnerable Ahead of US Manufacturing News

FXOpen

The Great Britain Pound (GBP) extended downside movement against the US Dollar (USD) on Friday, dragging the price of GBPUSD to less than even 1.5515 ahead of some key economic events. The technical bias however remains bullish in the long run due to a Higher High and Higher Low in the recent wave on daily chart.

Technical Analysis

As of this writing, the pair is being traded around 1.5512. A support may be seen around 1.5459, the 61.8% fib level ahead of 1.5349, the 76.4% fib level and then 1.5170, the swing low of the last major dip as demonstrated in the following daily chart.

Cable Seems Vulnerable Ahead of US Manufacturing News

On the upside, the pair is expected to face a hurdle near 1.5550, the confluence of 50% fib level as well as psychological number ahead of 1.5750, again the confluence of 23.6% fib level and psychological number and then 1.5928, the swing high of the last major rally. The technical bias will however remain bullish as long as the 1.5170 support area is intact.

US Manufacturing PMI

Markit Economics is due to release the Manufacturing Purchasing Managers Index (PMI) figure of the world’s largest economy today during the early New York Session. According to the average forecast of different economists, the manufacturing PMI registered 53.6 points reading in July as compared to the same reading in the month before. Generally speaking, a PMI reading above 50 shows expansion in the manufacturing activity and vice versa. Thus a better than expected actual outcome might incite renewed selling pressure in the price of cable.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy if we get another bearish confirmation in the form of a bearish pin bar or bearish engulfing candle.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Forex Analysis

The Pound and Euro Reach New Yearly Highs

Despite global economic instability and Donald Trump’s tariff policy, the EUR/USD and GBP/USD currency pairs are demonstrating upward momentum, reaching new yearly highs.

Today, market participants are focused on the European Central Bank meeting, where significant statements

Commodities

Gold Price Surpasses $3,300 for the First Time in History

Just six days ago, we highlighted the historic breakthrough of the $3,200 level for the first time. Now, as the XAU/USD chart shows today, the price of an ounce of gold on global exchanges is fluctuating above $3,

Shares

Chipmaker Stocks Declines

According to the charts, semiconductor stocks underperformed the broader equity market yesterday. While the S&P 500 index (US SPX 500 mini on FXOpen) fell by around 2.2%, the drop was far steeper across the chip sector:

→ The

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.