AUDGBP Hits Daily Low after Stronger UK Services PMI

AUDGBP hits the daily low after the United Kingdom Services PMI came in at 50  topping expectations of 49 in December. The British pound gets some bids across the board as the PMI figure suggests that the services sector is close in returning to expansion mode.

As we are approaching the Brexit deadline investors concern is on the rise about the relationship between the European Union and the UK after the divorce, and that might put some pressure on the pound.

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AUDGBP Price Analysis

AUDGBP challenges today the 50-day moving average, as the correction from monthly highs continues. The pair has managed to rebound from three years low at 0.5121 but the buyers run out of steam below the 100 days moving average.

On the downside the initial support stands at 0.5276 the daily low. A break below might accelerate the selling pressures for a test of the December 17th lows at 0.5236. In the case the pair breaks below the bears would target the three years low at 0.5121.

On the upside immediate resistance for AUDGBP will be met at 0.5318 the daily top. If the pair surpass that level the next target for the bulls would be the December 23rd high at 0.5360. What can cancel the negative momentum is a move above the 100-day moving average at 0.5372.

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