GBP/USD: Recovery to gain traction above 1.3530, awaits UK PMI

  • DXY consolidates below 92 handle.
  • UK services PMI to boost the recovery?

Fresh bids emerged near 1.3500 levels, which prompted a tepid recovery in GBP/USD during the Asian trades, with the bulls now look to regain the 1.3530 barrier heading into Europe.

GBP/USD: Brexit headlines shrugged-off?

The spot accelerated downbeat UK construction PMI-led declines and tested the 1.35 handle, as broad-based USD recovery gained traction on the release of solid US ISM manufacturing PMI and once again after the FOMC minutes turned out more hawkish, indicating the Fed is still poised to hike interest rates several times this year.

Over the last hours, the recovery in the greenback appears to have faltered, aiding the renewed upside seen in Cable. Moreover, the risk-on rally seen in the Asian equities amid better Chinese services PMI data and higher oil prices also lifted the sentiment around the risk currency, the GBP.

However, markets do not rule a fresh round of selling below 1.3500 levels should the UK services PMI data disappoint, especially after both the UK manufacturing PMI and construction PMI data showed dismal results.  

Valeria Bednarik, Chief Analyst at FXStreet noted: “The UK will release its November money figures this Thursday, alongside with the December Markit Services PMI. This last is expected at 53.8 and will have a larger influence on prices that money data, as another miss will likely send the pair to fresh weekly lows.” 

GBP/USD Preferred Strategy

Bednarik added: “The 4 hours chart shows that it is poised to extend its decline on a break below the mentioned daily low, as its developing below its 20 SMA that anyway maintains a bullish slope, while technical indicators are breaking through their mid-lines, with limited bearish strength. A recovery beyond 1.3560, on the other hand, will take off the downward pressure, favoring a recovery toward the 1.3650 region. Support levels: 1.3495 1.3450 1.3410. Resistance levels: 1.3560 1.3610 1.3655.”


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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD climbs above 1.1250 as investors eye coronavirus headlines

EUR/USD preserved its recovery momentum early Friday and rose above 1.1250 during the European trading hours. Markets are doubting the Fed's policy tightening prospects as the new coronavirus variant revives concerns over the economic recovery losing steam.


GBP/USD rebounds toward mid-1.3300s on broad dollar weakness

GBP/USD reversed its direction after dipping below 1.3300 earlier in the day and started to push higher toward 1.3350. The greenback is facing heavy selling pressure amid the sharp decline witnessed in the 10-year US Treasury bond yield.


Gold clings to strong gains above $1,800 as US T-bond yields plunge Premium

Gold staged a decisive rebound on Friday and reclaimed $1,800. The intense flight to safety is causing US Treasury bond yields to fall sharply and fueling XAU/USD's rally. Investors await news on vaccines' effectiveness against the new COVID variant.

Gold News

Cardano could tank to $1 if ADA fails to defend crucial support

Cardano price is currently hovering below a freshly shattered 6-hour demand zone, ranging from $1.68 to $1.79. This resulting crash could extend to the immediate and critical foothold at $1.40. 

Read more

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!