GBP/USD Drops Further Post-PMI
The British pound is now rapidly depreciating vs. the dollar, pushing GBP/USD to fresh lows in the 1.4470 area.
GBP/USD weaker on poor PMI
Spot
met further downside pressure after the key UK’s Services PMI has
missed expectations during April, coming in at 52.3 vs. forecasts at
53.5 and March’s 53.7. The result added to the recent disappointing
figures from Construction PMI and Manufacturing PMI seen earlier in the
week.
On the USD-side, Initial Claims and the speech by St. Louis
Fed James Bullard are expected later in the NA session, all ahead
tomorrow’s critical Non-farm Payrolls.
GBP/USD levels to consider
As
of writing the pair is down 0.08% at 1.4485 facing the next support at
1.4398 (20-day sma) ahead of 1.4298 (low Apr.21) and finally 1.4271
(55-day sma). On the flip side, a break above 1.4770 (high May 3) would
open the door to 1.4815 (2016 high Jan.4) and finally 1.4854 (200-day
sma).
