- GBP/USD daily chart shows the bearish flag breakdown.
- The immediate focus on the UK services PMI release.
GBP/USD closed below 100-day MA on Thursday, courtesy of the Bank of England's (BOE) dovish rate hike. The spot closed at 1.3058 and traded around 1.3070 in Asia.
Bearish continuation pattern
-636452740667355785.png)
A downside break of the inverted or bearish flag pattern indicates the sell-off from Sep. 20 high of 1.3657 has resumed. As per the measured height method, the downside break of the flag has opened doors for 1.2440 levels.
Focus on the UK services PMI
UK services PMI, due at 09:30 GMT, is expected to show the pace of expansion in the service sector activity cooled slightly to 53.3 in October from the September reading of 653.6.
A better-than-expected UK services may help Cable trim post-BOE loses. On the other hand, a weaker-than-expected services PMI would add credence to BOE's dovish forward guidance and could yield a drop below 1.30 handle.
Later in the day, the US wage growth numbers, due at 18:00 GMT, could yield big moves in the USD pairs.
GBP/USD Technical Levels
FXStreet Chief Analyst Valeria Bednarik writes - "The pair's 4 hours chart supports further declines ahead, as technical indicators barely decelerated their downward momentum once reaching oversold readings, where they stand, after the price broke below all of its moving averages, also below all of the Fibonacci that limited price action this last month."
Support levels: 1.3026 1.2985 1.2950
Resistance levels: 1.3075 1.3110 1.3150
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.
Recommended content
Editors’ Picks
AUD/USD extends losses towards dangerous levels
The AUD/USD pair declined by 0.40% to 0.6705 in Tuesday's session as the Australian Dollar faced renewed selling pressure. The US Dollar has regained strength, moving toward two-month highs due to increased risk aversion and ongoing concerns about China.
EUR/USD now targets the 200-day SMA
Extra weakness dragged EUR/USD to levels last seen in August around 1.0880 in response to the still unabated march north in the Greenback and rising cautiousness ahead of the ECB’s rate decision later in the week.
Gold trends upward amid falling US yields, US data eyed
Gold prices advanced Tuesday as US Treasury bond yields retreated, capping US Dollar gains. A light economic docket featured the New York Empire State Manufacturing Index and the release of the NY Fed Consumers Expectations Survey.
XRP back above $0.54 as Ripple makes key announcements at Swell 2024
Ripple (XRP) holds steady above key support at $0.54 on Tuesday as payment remittance firm Ripple makes announcements regarding exchange partners for its stablecoin RLUSD that is in the final stages of its launch.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.