GBP/USD weaker, looks to 1.3000 post-PMI

Cable drops further in the wake of PMI figures.
Key Services PMI slipped back to 50.1 in January.
Brexit headlines remain absent ahead of the February 14 vote.

Pablo Piovano FXStreet

The selling pressure around the Sterling is now picking up pace and dragging GBP/USD to the vicinity of the psychological support at 1.3000 the figure.

GBP/USD offered on poor data

Cable is intensifying the weekly leg lower after the critical Services PMI came in below expectations at 50.1 in January, the lowest level since July 2016.

The sentiment around the British Pound has been deteriorating as of late following renewed pessimism and increasing uncertainty surrounding the Brexit negotiations, all forcing spot to recede from last week’s 2019 highs above 1.3200 the figure.

Still on Brexit, UK’s PM Theresa May is expected to defend her plan to clinch a deal and avoid a ‘hard border scenario’ at today’s visit to Northern Ireland.

GBP/USD levels to consider

As of writing, the pair is losing 0.15% at 1.3016 facing the next support at 1.3000 (high Jan.17) seconded by 1.2965 (21-day SMA) and finally 1.2902 (100-day SMA). On the other hand, a break above 1.3089 (10-day SMA) will open the door to 1.3217 (2019 high Jan.25) and then 1.3257 (monthly high Oct.12 2018).

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD corrects lower, returns to 1.1650

EUR/USD could not sustain an earlier move to fresh tops just above 1.1680 on Thursday, coming under fresh selling pressure and revisiting the mid-1.1600s in the latter part of the NA session. The pair’s correction comes in response to an acceptable bounce in the US Dollar.

GBP/USD attempts some consolidation near 1.3350

GBP/USD is alternating gains with losses near 1.3350 on Thursday. The Greenback’s attempts to recover aren't really sticking, upbeat data or not, as traders stay confident that the Fed will deliver a 25 bps rate cut at its final meeting of the year.

Gold bull-bear tug-of-war extends ahead of US data

Gold struggles around $4,200 early Friday, eyes a modestly flat close to the week. US Dollar turns south alongside Treasury bond yields amid Fed rate cut buzz. Gold remains confined within a tight range; buyers refuse to give up yet.

XRP slides amid record on-chain activity, mixed technical signals

Ripple (XRP) is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.

Why the Fed may cut rates in December: Understanding the policy shift

The Fed has gone through a noticeable policy swing in recent months - from initiating a rate cut, to signaling a potential pause, and now shifting once again toward another cut in December. This has created understandable confusion among traders and investors trying to interpret the Fed’s reaction function.

XRP edges lower despite record on-chain activity and steady ETF inflows

Ripple is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.