GBP/USD analysis: still ranging, but risk leaned to the downside

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3287

UK Markit Manufacturing PMI expected at 53.5 in May, down from Aprils 53.9.
Unattractive Pound still bearish in the longer run.

The GBP/USD pair advanced up to 1.3347, its weekly high, but was unable to hold on to gains beyond the 1.3300 level, ending the day slightly below the figure and little changed for the day. The UK released the Nationwide Housing Prices index for May, down 0.2% in the month, and up to 2.4% YoY, both readings below market's forecast. Money figures were a bit more encouraging, although mortgage approvals decreased to 62.455K, missing market's expectations. Data, however, had little influence on the pair's behavior, still following risk sentiment back and forths. This Friday, the UK will see the release of the Markit Manufacturing PMI for May, expected at 53.5 from the previous 53.9. The short-term picture for the pair is neutral, as the pair is hovering around a flat 20 SMA, while technical indicators diverge from each other the Momentum heading higher above its mid-line, and the RSI heads lower around 45. The risk remains leaned to the downside despite the ongoing absence of directional strength, with a break now below 1.3245 required to confirm a new leg south.

Support levels: 1.3245 1.3200 1.3160

Resistance levels: 1.3315 1.3360 1.3400

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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