3 May 2016
GBP/USD turns negative near 1.4660
The sterling has fully surrendered its initial gains vs. the greenback, with GBP/USD coming all the way down to test lows in the 1.4660 area.
GBP/USD lower on USD-buying
The greenback has managed to revert the initial negative tone after the US Dollar Index rebounded from the critical support in the 92.00 area, prompting the riskier assets to fade the initial advance.
In the UK docket, April’s manufacturing PMI has disappointed expectations at 49.8, dropping below the 50 threshold for the first time since May 2013 and showing at the same time some deceleration in the domestic economy.
In the US calendar, Total Car Sales, the IBD/TIPP Optimism Index and the speech by Cleveland Fed L.Mester are all due later.
GBP/USD levels to consider
As of writing the pair is losing 0.05% at 1.4663 and a break below 1.4390 (100-day sma) would aim for 1.4298 (low Apr.21) and finally 1.4273 (55-day sma). On the other hand, the next hurdle aligns at 1.4815 (2016 high Jan.4) followed by 1.4861 (200-day sma) and finally 1.4948 (high Dec.25).
GBP/USD lower on USD-buying
The greenback has managed to revert the initial negative tone after the US Dollar Index rebounded from the critical support in the 92.00 area, prompting the riskier assets to fade the initial advance.
In the UK docket, April’s manufacturing PMI has disappointed expectations at 49.8, dropping below the 50 threshold for the first time since May 2013 and showing at the same time some deceleration in the domestic economy.
In the US calendar, Total Car Sales, the IBD/TIPP Optimism Index and the speech by Cleveland Fed L.Mester are all due later.
GBP/USD levels to consider
As of writing the pair is losing 0.05% at 1.4663 and a break below 1.4390 (100-day sma) would aim for 1.4298 (low Apr.21) and finally 1.4273 (55-day sma). On the other hand, the next hurdle aligns at 1.4815 (2016 high Jan.4) followed by 1.4861 (200-day sma) and finally 1.4948 (high Dec.25).