GBPUSD Slumps to Daily Lows On Weak Manufacturing PMI


GBPUSD sold aggressively to daily lows after the weaker than expected UK manufacturing PMI. The United Kingdom Manufacturing PMI came in at 51.7 below the market expectations of 51.8 in February. The weak PMI reading pressured the British pound against the US dollar, and as of writing the pair has lost over 50 pips down to 1.2759. Although the US dollar is under selling pressure against the other majors as investors increased bets that the Fed will proceed with a rate cut in the next policy meeting, in an attempt to offset the negative impact of the coronavirus in the economy.

In other data, the UK Consumer Credit came in at £1.23B, above the estimates  £1.1B in January. The Mortgage Approvals came in at 70.888K, the highest since February 2016, topping the forecasts of 67.9K in January.

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GBPUSD Resistance and Support

GBPUSD continues lower amid the Brexit talks uncertainty with the EU and the weaker economic data earlier today. The technical outlook is bearish now for GBPUSD as the pair trades below all the major daily moving averages. The pairs correction accelerated after the pair breached the previous week below the 100-day moving average support.

On the downside, initial support for the GBPUSD pair stands at 1.2754 the daily low. Next support level for the pair will be met at 1.2696 the 200-day moving average. A break below would pave the way for the next support area at 1.2654 the October 16th,  low.

On the other hand, the first resistance would be met at 1.2850 the daily top. If the GBPUSD breaks above, the next level to watch is at 1.2917 the high from February 28th. More selling pressure would be met at 1.2980 the 100-day moving average.

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