Pound Sterling Price News and Forecast: GBP/USD – Cable cracks key support zone [Video]
|GBP/USD: Selling pressure is mounting [Video]
Selling pressure is mounting. After the recent rebound failed around 1.3000, three decisive negative candles have driven Cable below the support at 1.2760. This has opened a test of 1.2650 which are the old highs from Q2 2020. With the increasingly negative configuration on momentum indicators, the market is selling into near term strength. A downtrend of the past three weeks is around 1.2900 so any near term rebound is a chance to sell. The old 1.2760 support is the first line of resistance now. A downside break back under 1.2650 would essentially move the outlook into a new bear phase and the low 1.20s come back into play. The importance of 1.3000 as a medium term resistance is growing. Read More...
GBP/USD Outlook: Cable cracks key support zone and hits fresh multi-month low
Cable dipped to nine-month low (1.2675) on Wednesday, in extension of strong fall in past three days, following downbeat PMI data.
The activity in UK Services sector slowed this month (55.1 current vs 58.8 previous month) and also missed forecast at 56.0, while Manufacturing PMI came slightly above expectations (54.3 vs 54.1 f/c) but also fell from previous month's 55.2.
Both indicators point to loss of momentum in post-lockdown recovery but still showing growth in their sectors, as Britain's economy is recovering from devastating fall in country's GDP in the second quarter (more than 20%).
Fresh weakness emerged below thick daily Ichimoku cloud (cloud base lays at 1.2750), probed below converged 100/200DMA's (1.2724) and cracked pivotal Fibo support at 1.2690 (38.2% of 1.1409/1.3482). Bears need clear break of these supports to spark fresh acceleration lower and extend correction of Mar-Aug 1.1409/1.3482 rally), but may take a breather above key support zone as momentum on daily chart reverses from deep negative territory and stochastic enters oversold zone. Read More...
GBP/USD hangs near two-month lows, below 1.2700 mark post-UK PMIs
The GBP/USD pair maintained its offered tone near two-month lows, below the 1.2700 mark and had a rather muted reaction to the UK macro data.
The pair prolonged its recent rejection slide from the key 1.3000 psychological mark and remained under some selling pressure for the fourth consecutive session on Wednesday. Even though the BoE Governor Andrew Bailey downplayed expectations of negative interest rates, the British pound struggled to attract any meaningful buying amid persistent Brexit-related worries. Read More...
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