GBP/USD: Weaker, Attacks 1.4400 ahead of UK PMI

GBP/USD: Weaker, Attacks 1.4400 ahead of UK PMI

3 June 2016, 08:12
Roberto Jacobs

GBP/USD: Weaker, Attacks 1.4400 ahead of UK PMI

The GBP/USD pair keeps the offered tone intact in the early European trades, with the bulls guarding 1.4400 barrier, amid cautious tone prevalent in the markets as we move towards the UK services PMI release. 

GBP/USD: 100-DMA - next in focus

Currently, GBP/USD trades -0.10% lower at 1.4411, heading for a test of 1.4400 handle once again. The cable extends its downbeat momentum into a fourth-day today as mounting concerns surrounding a Brexit vote combined with broad based US dollar rebound weighs down on the majors.

The greenback regained strength against its major rivals yesterday, mainly driven by a sharp sell-off in EUR/USD after ECB sounded quite cautious at its policy meeting held yesterday and talked down in the inflation outlook. Moreover, in-line with expectations US ADP jobs data and poor UK construction PMI report further added to the bearish pressure on GBP/USD.

All eyes now remain on the US labour market report due later in the NA session for next direction on the cable.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4436/69 (50 & 5-DMA), above which 1.4500 (Round number) would be tested. On the flip side, support is seen at 1.4358 (100-DMA) below that at 1.4310 (Daily S3).


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