Wednesday, October 3, 2018

GBP/USD - 03 October 2018

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Fundamental Highlights

The Pound continues to push lower as economic data disappoints even further. On Monday, the U.K's Manufacturing PMI printed lower than expected. This was then followed by yesterday's disappointment in the U.K's Construction PMI. For today, investors will monitor the most important U.K PMI figure which is the Services PMI. A disappointment from this end will represent a high probability of a short term contraction in the U.K economy. Investors will also monitor any developments related to Brexit given that Prime Minister Theresa May is holding a conference later during the day.

Technical Analysis

The Pound remains bearish given that it is trading below the 1.30387 resistance level. Moreover, the bearish bias continues due to the fact that the pair is trading below all the major three moving averages. The next key support level to watch will be the 1.29290 level.

Support: 1.29290 1.28187
Resistance: 1.30387 1.31513

Chart (H4)
GBPUSD

 
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