GBP/USD closes in on 1.4000 as focus shifts to US PMI data


  • GBP/USD continues to push higher toward 1.4000 on Wednesday.
  • US Dollar Index struggles to gain traction following the two-day decline.
  • Markit Manufacturing PMI for US is expected to edge lower to 61.4 in June.

The GBP/USD pair capitalized on the broad selling pressure surrounding the greenback and closed the last two days in the positive territory. On Wednesday, the pair continues to edge higher and was last seen trading at its highest level in six days at 1.3988, rising 0.3% on a daily basis.

Latest Brexit headline supports GBP

Earlier in the day, the data from the UK showed that the Markit Manufacturing PMI retreated to 64.2 in June's preliminary reading, compared to analysts' estimate of 64. Meanwhile, Irish national broadcaster RTE reported on Wednesday that the EU member states have agreed to grant the UK a three-month extension to the Northern Irelan protocol and helped the GBP preserve its strength.

Later in the session, the IHS Markit's preliminary Services PMI and Manufacturing PMI reports from the US will be looked upon for fresh impetus. Ahead of these data, the US Dollar Index is posting small daily losses near 91.60, allowing the GBP/USD's bullish momentum to remain intact.

Meanwhile, Wall Street's main indexes remain on track to start the day flat, suggesting that the risk perception is unlikely to provide a directional clue to the USD.

Technical levels to watch for

GBP/USD

Overview
Today last price 1.3989
Today Daily Change 0.0044
Today Daily Change % 0.32
Today daily open 1.3945
 
Trends
Daily SMA20 1.4092
Daily SMA50 1.4029
Daily SMA100 1.3943
Daily SMA200 1.3609
 
Levels
Previous Daily High 1.3964
Previous Daily Low 1.386
Previous Weekly High 1.4133
Previous Weekly Low 1.3792
Previous Monthly High 1.4234
Previous Monthly Low 1.3801
Daily Fibonacci 38.2% 1.3924
Daily Fibonacci 61.8% 1.39
Daily Pivot Point S1 1.3883
Daily Pivot Point S2 1.382
Daily Pivot Point S3 1.3779
Daily Pivot Point R1 1.3986
Daily Pivot Point R2 1.4026
Daily Pivot Point R3 1.4089

 

 

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