GBP/USD (current price: 1.4540)
The British Manufacturing PMI came in much worse than expected, at 49.2. The reading signals contraction and that cooled down bullish the speculation in the Pound that was triggered by easing Brexit fears. The technical picture is mixed, as yesterday’s strong reversal suggests a correction, but the uptrend that started in February ago remains intact. Support stands between 1.4475 and 1.45 while the 200-day MA serves as resistance at 1.485.
Our assessment: Cable retreated after the great run-up of the previous weeks, and the pair is likely headed lower before resuming the underlying trend.
