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Pound Pummeled to key levels

Market Analysis

GBPUSD, Daily, H1 

The Dovish outlook from the BOE and the confirmation of Jermoe Powell as the next “safe pair of hands’ to run the FOMC combined to help the GBPUSD close below the recent October low and this morning it has dropped below 1.3043 down 0.15 percent so far today.  next support on the DAILY chart is the psychological 1.3000, the summer low at 1.2910 and the 200 day moving average at 1.2850.  The resistance at 1.3300 now seems rather distant. 

Intraday we have the important UK Services PMI’s at 09:30 GMT with exceptions of a slight dip to 53.3 from 53.6 last month.  The H1 chart is struggling  with the resistance at 1.3065 and 1.3077 even with a significantly over sold RSI, a weak PMI number and the pound is likely to come under more pressure and those Daily lows will look even closer. A strong PMI and a recovery of 1.3095 would be required before today’s NFP data dictates the rest of the direction today.

 

 

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Stuart Cowell

Senior Market Analyst

HotForex

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