Despite upbeat UK PMI data, GBP/USD remains under pressure as the US Dollar strengthens in a risk-averse market. Investors are eagerly awaiting the S&P Global PMI data from the US to gauge further market movements.
After closing lower on Tuesday, GBP/USD touched its lowest level since July 11 below 1.2880. While there was a slight recovery in the European session, the pair struggled to gain momentum.
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The latest UK PMI data showed an improvement in business activity, but the overall market sentiment remains cautious. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, pointed out potential inflationary pressures that could impact policy decisions.
Despite positive data from the UK, the FTSE 100 Index was down nearly 0.5%, reflecting the risk-off sentiment. The upcoming US PMI data could further influence the direction of GBP/USD as the US Dollar’s strength continues to dominate.
GBP/USD Technical Analysis
On the technical side, the RSI indicator on the 4-hour chart suggests bearish momentum. Key support levels for GBP/USD include 1.2875-1.2870 and 1.2830, while resistance levels are at 1.2900 and 1.2940-1.2950.
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Stay tuned for more updates on GBP/USD as market dynamics continue to evolve.
Analysis:
The GBP/USD pair is facing downward pressure despite positive UK PMI data. The US Dollar’s strength in a risk-averse market is keeping the pair subdued. Investors are closely watching upcoming US PMI data for further market cues. From a technical standpoint, GBP/USD is testing key support levels, with resistance seen at higher levels. Overall, market sentiment and economic data will play a crucial role in determining the pair’s future direction.