GBP/USD snaps two-day run-up, slips below 1.2600, ahead of UK PMI

GBP/USD slips from 13-day high amid broad US dollar pullback.
UK PM Johnson confident of being past the peak, will give guidelines on easing lockdown restrictions next week.
British diplomats reject EU’s another request for an embassy in Belfast, still hope for a deal soon.
US dollar pulls back amid fresh US-China trade tussle.

Anil Panchal FXStreet

GBP/USD takes a U-turn from 13-day top to 1.2565, down 0.25% on a day, while heading into the London open on Friday. In doing so, the Cable fails to defy the broad US dollar pullback amid renewed fears of the US-China trade war, as well as Brexit/coronavirus (COVID-19) worries. Though, cautious sentiment ahead of UK Manufacturing PMI checks the pair’s moves.

The US dollar registers a comeback following the market’s rush to risk-safety amid the growing concerns of another US-China trade-war season, backed by the recent comments from US President Donald Trump.

The UK PM Boris Johnson struck an upbeat tone during his first daily coronavirus briefings after returning to the office. The Tory leader said to be past the peak of the pandemic while sharing no key guidelines about the economy’s re-open.

It’s worth mentioning that data from John Hopkins University suggest the UK as having the second-highest death toll in Europe, beyond 26,700 with the latest addition of 674, whereas confirm cases grow past-172,000.

Elsewhere, Brexit talks between the EU and the UK diplomats didn’t go well on Reuters as Britain rejected another request from the bloc to open an official representation in Belfast for customs officials to monitor shipments between Great Britain and Northern Ireland, as per The Guardian. Even so, Tories are hopeful of cracking a deal with the EU.

Furthermore, the UK’s trade body Make UK, said that the British Factory Output is at the risk of halving due to the virus, per Reuters.

Moving on, updates concerning the US-China trade deal, as well as virus/Brexit news, can keep the Cable traders busy while the first revision of UK’s April month Manufacturing PMI, expected 32.8 versus 32.9 initial forecast, will occupy the British calendar. For the US data, Manufacturing PMIs from the ISM and Markit will be important to watch.

Technical analysis

The pair currently seems to decline towards 61.8% Fibonacci retracement of March month fall, near 1.2515, ahead of revisiting 1.2500 round-figure. Meanwhile, a daily closing beyond a 200-day SMA level of 1.2655 becomes necessary for the bulls to keep the helm and aim for February month low surrounding 1.2725.

Additional important levels

Overview
Today last price	1.2565
Today Daily Change	-28 pips
Today Daily Change %	-0.22%
Today daily open	1.2593

Trends
Daily SMA20	1.2421
Daily SMA50	1.2452
Daily SMA100	1.2752
Daily SMA200	1.2654

Levels
Previous Daily High	1.2644
Previous Daily Low	1.2429
Previous Weekly High	1.2503
Previous Weekly Low	1.2247
Previous Monthly High	1.2648
Previous Monthly Low	1.2165
Daily Fibonacci 38.2%	1.2562
Daily Fibonacci 61.8%	1.2511
Daily Pivot Point S1	1.2467
Daily Pivot Point S2	1.2341
Daily Pivot Point S3	1.2252
Daily Pivot Point R1	1.2682
Daily Pivot Point R2	1.277
Daily Pivot Point R3	1.2896

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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