GBPUSD Gets Rejected at Falling Trendline, Hangs on to 100 SMA Ahead of UK PMI Reports
GBPUSD is among the biggest losers in today’s Asian session, lagging only behind AUDUSD and NZDUSD. Risk aversion seems to be dictating market sentiment this morning with the yen, dollar, and Swiss franc performing better than their non-safe haven counterparts. As of this writing, the currency pair is down by 0.34% at 1.2197. Can the UK PMI reports help provide GBPUSD with support?
Due at 9:30 am GMT, the UK manufacturing PMI is expected to print at 35.1. Meanwhile, the services PMI is eyed at 24.1. Better-than-expected figures could help GBPUSD hold its ground. Alternatively, disappointing figures could push GBPUSD even lower.
On the 4-hour time frame, it can be seen that GBPUSD bounced off resistance at the falling trendline (from connecting the highs of April 30, May 8, and May 19). Resistance in the area around 1.2270 held and the recent downtick in GBPUSD could suggest that the currency pair may soon be headed to 1.2075 where it bottomed on May 18.
However, it’s worth noting that the currency pair is currently testing support at the 100 SMA on the 1-hour chart. A strong bullish candle closing around 1.2210 could mean that there are still enough buyers left for GBPUSD. Should this happen, we could see the currency pair soon retest its May 19 highs around 1.2290.More content