GBP/USD Drops Further Post-PMI

GBP/USD Drops Further Post-PMI

5 May 2016, 11:45
Roberto Jacobs

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).


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