GBP/USD Forecast: Pound's fragility comes into view amid recession fears

GBP/USD has reversed its direction in the European session on Tuesday and dropped below 1.2500, erasing the majority of the gains it registered on Monday. The data from the UK reminded investors of the recession risks in the UK and weighed heavily on the British pound.

The S&P/CIPS Services PMI in May plunged to 51.8 in May's flash estimate from 58.9 in April. This print missed the market expectation of 57.3 by a wide margin. Similarly, the Manufacturing PMI dropped to 54.6 from 55.8 in the same period. Although these figures suggest that the business activity continued to expand at a modest pace in May, the loss of growth momentum is a significant warning sign. Read more...

GBPUSD

GBP/USD: Bearish shift after breaking below 1.25

GBP/USD has declined sharply after having tested 1.26. As FXStreet’s Eren Sengezer notes, sellers could retain control if the pair fails to reclaim 1.25.

“Later in the session, the PMI data from the US will be watched closely by market participants. In case these data highlight the diverging US-UK economic outlook, GBP/USD could extend its slide.”

“The ascending trend line coming from mid-May stays intact despite the latest decline and forms significant support at 1.25. With a four-hour close below that level, the pair could push lower toward 1.2450 (static level) and 1.2400 (psychological level, 100-period and 50-period SMAs on the four-hour chart).” Read more...

Breaking: GBP/USD plummets to sub-1.2500 levels amid doubts over further BoE rate hikes

The GBP/USD pair continued with its struggle to make it through the 1.2600 round-figure mark and witnessed a dramatic turnaround during the early part of the European session on Tuesday. The steep intraday slide dragged spot prices back below the 1.2500 psychological mark, or a fresh daily low in the last hour.

The latest leg of a sudden fall of over 100 pips followed the disappointing release of the UK Services PMI, which showed a sharp deceleration in growth during May. In fact, the Preliminary UK Services Business Activity Index slumped to a 15-month low and arrived at 51.8 versus April’s final readout of 58.9 and 57.3 expected. Read more...

GBP/USD

Overview
Today last price 1.2502
Today Daily Change -0.0086
Today Daily Change % -0.68
Today daily open 1.2588
 
Trends
Daily SMA20 1.2427
Daily SMA50 1.2819
Daily SMA100 1.3147
Daily SMA200 1.3355
 
Levels
Previous Daily High 1.2601
Previous Daily Low 1.2479
Previous Weekly High 1.2525
Previous Weekly Low 1.2217
Previous Monthly High 1.3167
Previous Monthly Low 1.2411
Daily Fibonacci 38.2% 1.2555
Daily Fibonacci 61.8% 1.2526
Daily Pivot Point S1 1.2511
Daily Pivot Point S2 1.2434
Daily Pivot Point S3 1.2389
Daily Pivot Point R1 1.2633
Daily Pivot Point R2 1.2678
Daily Pivot Point R3 1.2755

 

 

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