Fundamental approach:
- The Pound was mildly softer this week amid firmer US data impulses and pre-NFP caution, while UK growth signals from Aug PMIs offered only limited support to the Pound.
- UK Services PMI accelerated to 53.6 in Aug, the fastest in a year, hinting at resilient activity but with persistent employment softness and sticky price pressures, tempering BoE easing bets only modestly.
- On the US side, expectations around ISM prints and Friday’s payrolls supported the US dollar, fostering two‑way but USD‑tilted flows.
- Looking ahead, GBPUSD could remain range‑bound but potentially break on US NFP and ISM Services; strong US labor and services data may buoy US dollar, while a downside surprise in data could lift the Pound.
Technical approach:
- GBPUSD printed an engulfing candle, breaking the range of 1.3400-1.3580 to the downside and closing below both EMAs, indicating a short-term shift to bearish momentum.
- If GBPUSD remains below the resistance at 1.3400 and both EMAs, the price may plunge and retest the following support at 1.3175.
- On the contrary, closing above both EMAs may prompt a recovery to retest the following resistance at 1.3580.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
- The Pound was mildly softer this week amid firmer US data impulses and pre-NFP caution, while UK growth signals from Aug PMIs offered only limited support to the Pound.
- UK Services PMI accelerated to 53.6 in Aug, the fastest in a year, hinting at resilient activity but with persistent employment softness and sticky price pressures, tempering BoE easing bets only modestly.
- On the US side, expectations around ISM prints and Friday’s payrolls supported the US dollar, fostering two‑way but USD‑tilted flows.
- Looking ahead, GBPUSD could remain range‑bound but potentially break on US NFP and ISM Services; strong US labor and services data may buoy US dollar, while a downside surprise in data could lift the Pound.
Technical approach:
- GBPUSD printed an engulfing candle, breaking the range of 1.3400-1.3580 to the downside and closing below both EMAs, indicating a short-term shift to bearish momentum.
- If GBPUSD remains below the resistance at 1.3400 and both EMAs, the price may plunge and retest the following support at 1.3175.
- On the contrary, closing above both EMAs may prompt a recovery to retest the following resistance at 1.3580.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.