GBPUSD:
GBP/USD declines as markets move into mid-week actionInvestors are awaiting Friday’s twin PMIs from the UK and the US.
The GBP/USD pair experienced a weakening on Wednesday, retreating by one-fifth of a percent as markets await a decisive push that will shift risk appetite in one direction or the other. Markets have been subdued during the slow interval between key mid-week data releases, with Purchasing Managers’ Index (PMI) data being the light at the end of the tunnel this week.
Traders will be focused on Friday’s S&P Global PMI data, which will be released on both sides of the Atlantic. This week, the UK and US PMI business activity survey results for January are expected to be mixed, with a contraction in services and a recovery, albeit small, in manufacturing. While PMI data typically exerts minimal influence unless it deviates from forecasts, the number of respondents in the survey is generally limited, necessitating a cautious interpretation of the overall figures.
Trading recommendation: We follow the level of 1.2300, if we consolidate above it we consider Buy positions, if we rebound we consider Sell positions.
Origin: FreshForex
