GBP/USD Hits Highest Level Since July 2023 Above 1.3100: S&P Global/CIPS Composite PMI Shows Improvement
GBP/USD reached its highest level since July 2023, trading above 1.3100 on Thursday. The S&P Global/CIPS Composite PMI in the UK saw an improvement to 53.4 in August, signaling positive growth in the private sector. The US economic docket will soon reveal S&P Global Services and manufacturing PMI data, providing further insights into the market.
After five consecutive days of positive trading, GBP/USD continued its upward trend, hitting a peak near 1.3130. Despite overbought conditions, the Pound Sterling remains strong due to the optimistic PMI data from the UK.
The S&P Global/CIPS Composite PMI for August showed a significant improvement from July, indicating a growing business activity in the private sector. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, commented on the positive economic growth, job creation, and lower inflation in August.
Later in the day, the US will release preliminary August PMI data, with expectations of a slight decrease to 53.5 from 54.3 in July. A lower-than-expected PMI reading could lead to concerns about a downturn in the US economy, weakening the US Dollar against other currencies.
In terms of technical analysis, GBP/USD is near the upper limit of an ascending regression channel, with the RSI indicator reflecting overbought conditions. Resistance levels are seen at 1.3130-1.3140 and 1.3200, while support levels are at 1.3100, 1.3075, and 1.3030.
Analysis Breakdown:
- GBP/USD is trading at its highest level since July 2023, showing strength in the Pound Sterling.
- The UK’s Composite PMI improved to 53.4, indicating growth in the private sector.
- The US will release PMI data, with expectations of a slight decrease, potentially impacting the US Dollar’s valuation.
- Technical analysis suggests resistance levels at 1.3130-1.3140 and 1.3200, with support levels at 1.3100, 1.3075, and 1.3030.
- Overall, positive economic data and market trends suggest a bullish outlook for GBP/USD, but caution is advised due to potential market fluctuations.