GBP/USD testing offers near 1.3100 ahead of UK manufacturing PMI, US NFP

Bias leaning to the downside amid dollar comeback and increased odds of no deal Brexit.
US-China trade optimism appears to limit the downside heading into the UK PMI and US NFP

Dhwani Mehta FXStreet

The GBP/USD pair trades modestly flat near the 1.31 handle heading towards the London opening, as the upside attempts continue to get sold-off ahead of the last amid broad-based US dollar rebound and looming Brexit uncertainty.

The greenback staged a solid comeback and traded near two-day tops vs. its main rivals in Asia, in the wake of upbeat US housing data and the risk-on rally in the US equities amid fresh progress made on the US-China trade talks. Further, a round of profit-taking on the USD shorts amid dovish Fed is also another reason for limited upside in the Cable.

On the GBP-side of the equation, the bulls remain cautious, as markets are already pricing-in a no-Brexit deal, as the UK PM May is likely to return to the negotiation table on the backstop issue with the European Union (EU). In the view of Valeria Bednarik, FXStreet’s Chief Analyst, “yet unless she has a material alternative to offer to the Union, the trip will be to no avail.”

Attention now turns towards the UK manufacturing PMI data and the US payrolls for further trading impetus on the spot. “This Friday, the UK January Markit Manufacturing PMI is expected to come at 53.5 vs. 54.2 previously, adding to Sterling negative tone”, Valeria adds.

GBP/USD Technical Levels

Overview:
    Today Last Price: 1.3093
    Today Daily change: -23 pips
    Today Daily change %: -0.18%
    Today Daily Open: 1.3116
Trends:
    Daily SMA20: 1.2938
    Daily SMA50: 1.2789
    Daily SMA100: 1.2901
    Daily SMA200: 1.3046
Levels:
    Previous Daily High: 1.3161
    Previous Daily Low: 1.3098
    Previous Weekly High: 1.3214
    Previous Weekly Low: 1.283
    Previous Monthly High: 1.3214
    Previous Monthly Low: 1.2438
    Daily Fibonacci 38.2%: 1.3137
    Daily Fibonacci 61.8%: 1.3122
    Daily Pivot Point S1: 1.3089
    Daily Pivot Point S2: 1.3061
    Daily Pivot Point S3: 1.3025
    Daily Pivot Point R1: 1.3152
    Daily Pivot Point R2: 1.3189
    Daily Pivot Point R3: 1.3216

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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