GBP/USD drops to 1.3460 on USD-buying

Cable tumbles to 1.3460, daily lows.
UK manuf PMI surprised to the upside.
Upside capped around 1.3550.

Pablo Piovano FXStreet

The Sterling remains on the defensive so far at the end of the week, with GBP/USD navigating the area of session lows around 1.3460.

GBP/USD now looks to US data

Renewed selling pressure is hitting the Sterling so far today, with the almost logical profit taking sentiment kicking in following recent peaks in the mid-1.3500s and the strong upside seen in past weeks,

Despite the current correction lower, Cable manages well to keep alive the 4-week rally, advancing almost 4% during November, or over 5 big figures since last month’s lows around 1.3040.

Earlier in the session, UK’s manufacturing PMI surprised to the upside in November, although the auspicious print failed to gave extra wings to the GBP upside.

Data wise across the pond, October’s ISM manufacturing will be the salient publication along with speeches by St. Louis Fed J.Bullard (2019 voter, centrist), Dallas Fed R.Kaplan (voter, hawkish) and Philly Fed P.Harker (voter, hawkish).

GBP/USD levels to consider

As of writing, the pair is losing 0.41% at 1.3474 and a break below 1.3458 (low. Dec1) would target 1.3416 (2014-2017 down trend line) en route to 1.3353 (10-day sma). On the other hand, the immediate up barrier aligns at 1.3550 (high Dec.1) seconded by 1.3658 (2017 high Sep.20) and finally 1.3700 (psychological level).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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