GBPUSD Remains Vulnerable After US Manufacturing Data

FXOpen

The Great Britain Pound (GBP) slid down against the US Dollar (USD) on Friday, decreasing the price of GBPUSD to less than 1.2900 following some key economic events. The technical bias has however turned bullish because of a higher high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 1.2873. A support can be noted around 1.2844 (a horizontal support area) ahead of 1.2795 (the 23.6% fib level) and then 1.2700 (the confluence of horizontal support as well as psychological number) as demonstrated in the given below chart.

GBPUSD Remains Vulnerable After US Manufacturing Data

On the upside, a hurdle may be noted around 1.2997 (a short-term horizontal resistance area) ahead of 1.3047 (the high of the recent upside wave) and then 1.3100 (the psychological number). The technical bias shall remain bullish as long as the 1.2700 support area is intact.

US Manufecturing PMI

The Institute for Supply Management’s (ISM) Manufacturing PMI said that growth in activity was essentially unchanged in May. The composite index was edged marginally higher, up from 54.8 in April to 54.9 in May. On the reassuring front, it was the ninth consecutive monthly expansion in manufacturing activity in the United States, with the sector showing signs of definite progress after two years of notable challenges. The sample comments tend to echo those improvements, citing better economic conditions, a favorable outlook and increased difficulties in finding labor. At the same time, the headline index has drifted lower since February (57.7), and respondents continue to cite some lingering headwinds and increased pricing pressures. The ISM report mostly mirrors other sentiment surveys which have observed some pullbacks from multiyear highs post-election, even as they remain mostly encouraging.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.

 

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.

Latest from Forex Analysis

SNB Unexpectedly Lowers Interest Rate from 1.50% to 1.25% GBP Awaits Bank of England Verdict: Volatility Ahead? Market Analysis: AUD/USD and NZD/USD Sight Steady Increase European Currencies Adjust to Support Levels: Is Growth Possible? NZD/USD Exchange Rate Falls from Nearly 5-Month High

Latest articles

Weekly Market Wrap With Gary Thomson: Nasdaq 100 Index, GBP, SNB Interest rate, Brent Crude Oil
Financial Market News

Weekly Market Wrap With Gary Thomson: Nasdaq 100 Index, GBP, SNB Interest rate, Brent Crude Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • Nasdaq 100 Index Reaches
Analytical META Stock Predictions for 2024, 2025-2030, and Beyond
Trader’s Tools

Analytical META Stock Predictions for 2024, 2025-2030, and Beyond

Meta Platforms, Inc., formerly known as Facebook, is a leading technology company renowned for its social media and virtual reality innovations. This article provides a detailed analysis of Meta's stock performance, future analytical projections for 2024 to 2030, and the

Commodities

Natural Gas Price: Bullish Trend Weakens

Forecasts of a hotter summer, published during April and May, led to a sustained bullish trend in the natural gas market, as this commodity is heavily used for air conditioning.

Specifically:
→ The XNG/USD chart indicates that from 1st April

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.