GBPUSD At Daily Highs After Upbeat Manufacturing PMI
GBPUSD trades close to daily highs supported by stronger UK PMI data. Manufacturing production rose in February at 51.9 beating the expectations of 49.7. The manufacturing PMI is now the highest it has been in almost a year. But firms are reporting that stocks of inputs are taking longer to make deliveries. Many companies are facing disruption to supplies of components from China in the aftermath of the coronavirus outbreak. The Services PMI came in at 53.3 below the forecasts of 53.4 in February.
The economic data today coming after two weeks of positive figures from the UK (retail sales, employment), supporting the views that the UK economy is improving after the Brexit uncertainty.
GBPUSD recovers all of yesterday’s losses in an attempt to break above the 100-day moving average. The technical outlook is neutral for the pair but that might change if the GBPUSD pair manages today to close above the 100-day moving average.
On the upside, immediate hurdle stands at 1.2950 the daily high. If the pair break above more selling pressure would emerge at 1.3022 the high from February 19. Next level of resistance stands at 1.3070 the February double top.
On the flip side, first support for GBPUSD pair stands at 1.2872 the daily low. Next support for GBPUSD will be met at 1.2824 the low from November 27th, 2019. A break below might accelerate the selling pressure targeting the November 11, 2019 low at 1.2773.