The GBP/USD pair extended its decline down to 1.5234 in the European morning, level not seen since early June, as the UK macroeconomic data continues to show signs of economic slowdown.
British services PMI for August fell to 55.6, from 57.4 in July, growing at its slowest pace since May 2013, adding to the latest batch of negative data in the UK. Following Wednesday's upward corrective movement, the pair is back under pressure, with the daily chart showing that it continues posting lower lows and lower highs, reflecting the strength of the ongoing bearish trend.
Shorter term, the 4 hours chart shows that the pair has managed to bounce from its low, but the bearish trend prevails as the 20 SMA heads lower around 1.5330, providing a strong dynamic resistance in the case of further recoveries, whilst the Momentum indicator heads south well below its 100 level and the RSI indicator holds flat near oversold levels.
At this point, the price needs to advance beyond the mentioned 1.5330 level to be able to extend its intraday gains, with the next resistances at 1.5370 and 1.5420. Renewed selling interest below 1.5250 on the other hand, should lead to an approach to the 1.5200 level, whilst below this last, the next probable bearish target comes at 1.5165.
View the live chart of the GBP/USD
Recommended Content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.