GBP/USD trades under the 200-hour MA for the primary time since 15 February
The greenback is holding regular and is main good points in opposition to the remainder of the foremost bloc up to now right this moment, and that’s serving to cable sellers discover a leg decrease forward of European buying and selling. The massive query now will likely be can they capitalise on the scenario right here?
It’s the first time since 15 February that value falls under the 200-hour MA (blue line) and that sellers are seen to be in near-term management. At the moment, there’s minor assist round 1.3130-40 earlier than the 1.3100 deal with will likely be known as into query for additional assist.
Wanting forward, we’ll have UK providers PMI information to supply some path for merchants. The important thing factor to be careful for within the information launch will likely be any drop in the direction of contraction territory for the PMI prints. If it does, that can pose a little bit of setback for the pound as Brexit uncertainty continues to weigh on the UK economic system. And that will likely be one thing to contemplate in gentle of current talks of a Brexit extension; prolonging stated uncertainty.
For now, the technical bias is beginning to favour sellers once more within the near-term however let’s examine if they’re able to construct on that within the periods forward. Brexit developments proceed to fulfill a standstill so we could also be in for extra uneven value motion over the following week.