GBP/USD Current price: 1.3777
- UK data was generally encouraging but fell short of boosting the pound.
- The broad dollar’s weakness maintains GBP/USD afloat in the near term.
- GBP/USD needs to firm up above the 1.3800 level to be able to extend its gains.
The GBP/USD pair posted a modest intraday advance this Wednesday, holding below the 1.3800 threshold. The pair topped at 1.3798 and currently trades in the 1.3780 price zone, backed by the broad dollar’s weakness and encouraging UK data. The UK reported August Nationwide Housing Prices, which rose 11% YoY, beating expectations.
The August Markit Manufacturing PMI was upwardly revised to 60.3, despite “UK manufacturers continued to face rising constraints caused by supply chain issues,” according to the official report. Finally, the UK’s BRC Shop Price Index contracted 0.8% in August, better than the previous -1.2%. The country won’t publish macroeconomic figures on Thursday.
GBP/USD short-term technical outlook
The daily chart for the GBP/USD pair shows that the pair topped around a mildly bullish 200 SMA for a second consecutive day, as the price struggles around a bearish 20 SMA. In the same chart, technical indicators have advanced further within negative levels and are currently challenging their midlines, suggesting an upcoming advance without confirming it.
In the nearer term and according to the 4-hour chart, the pair has limited bullish potential. The pair keeps trading below a flat 200 SMA, providing resistance around 1.3800, although the 20 SMA is crossing above the 100 SMA, both below the current level. The Momentum advances within positive levels but stands below its previous highs, while the RSI is flat at around 57, indicating an absence of buying interest.
Support levels: 1.3725 1.3680 1.3630
Resistance levels: 1.3800 1.3845 1.3890
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.