GBPUSD Breaks Below 1.29 USD Safe Haven Status On The Bid
GBPUSD trades close to daily lows amid USD strength across the board. Coronavirus concerns shift investors attention to the safe-haven US Dollar. Investors ignore the recent strong economic data from the UK economy as the coronavirus uncertainty threats global economy.
On Friday, the UK Manufacturing production rose in February at 51.9 topping the expectations of 49.7. The manufacturing PMI figure is the highest in the last twelve months. Companies are reporting that stocks of inputs are taking longer to make deliveries. Many companies are facing disruption to supplies of components from China as many workers haven’t return to their jobs in the aftermath of the coronavirus outbreak.
GBPUSD is trading below the 100-day moving average the last three trading sessions while today an attempt in the Asian session to break above met intense selling pressure. A sell-off in stock markets also weighed on investors sentiment. The technical outlook is negative for the short term.
On the downside, first support for GBPUSD stands at 1.2886 the daily low. Next support for the pair will be met at 1.2824 the low from November 27, 2019. A break below might test the next support at 1.2773 the November 11th, 2019 low.
On the other hand, immediate resistance would be met at 1.2954 the daily top. If the pair breaks above the next level to watch is at 1.3022 the high from February 19. Next level of resistance stands at 1.3070 the February double top.