GBP/USD (current price: 1.4435)
The Pound has been hit hard by the negative news regarding manufacturing yesterday. Sales were down by -0.8% in last month, from an already downwardly revised reading in March. The weakness in economic numbers has been obvious recently, and that lead to volatile trading in the Pound as the headwinds of the uncertainty surrounding the Brexit referendum calmed down. Cable has traded in a 200 pip range around 1.445, and the pair is back to the mid-point of the range this morning, as traders await today’s numbers on the British labor market.
Our assessment: GBP/USD is probably headed back to the lower boundary of its short-term range at 1.435, as risk-on currencies are pressured by negative investor sentiment today, with the negative economic trends also weighing on the Pound.
