Pound Awaits Direction Ahead of PMI Data
Macro:
The pound weakened due to the absence of significant economic data as markets look for new catalysts.
Today's movement is expected to align with dollar trends while traders focus on tomorrow's S&P Global PMI releases. UK and US Jan PMI figures are anticipated to show mixed results, with services slowing and manufacturing rebounding.
Technical:
- GBPUSD failed to break above its resistance of 1.2320/70, coinciding with EMA21. The price is below both EMAs, indicating that downward momentum persists.
- If GBPUSD remains below 1.2320, the price could shrink to its next support of 1.1940.
- Conversely, staying above 1.2320/70 may prompt a retest at its nearby resistance 2520.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
The pound weakened due to the absence of significant economic data as markets look for new catalysts.
Today's movement is expected to align with dollar trends while traders focus on tomorrow's S&P Global PMI releases. UK and US Jan PMI figures are anticipated to show mixed results, with services slowing and manufacturing rebounding.
Technical:
- GBPUSD failed to break above its resistance of 1.2320/70, coinciding with EMA21. The price is below both EMAs, indicating that downward momentum persists.
- If GBPUSD remains below 1.2320, the price could shrink to its next support of 1.1940.
- Conversely, staying above 1.2320/70 may prompt a retest at its nearby resistance 2520.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
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