- – The British Pound recently broke a major support area at 1.2400 against the US Dollar.
- – There is a connecting bearish trend line with resistance at 1.2430 formed on the 4-hours chart of GBP/USD.
- – The UK’s Manufacturing Purchasing Managers Index (PMI) for Feb 2017 released by both the Chartered Institute of Purchasing & Supply and the Markit Economics posted a decline from 55.9 to 54.6.
UK Manufacturing PMI
Today in the UK, the Manufacturing Purchasing Managers Index (PMI) for Feb 2017 released by both the Chartered Institute of Purchasing & Supply and the Markit Economics. The forecast was aligned for a decline from the last reading of 55.9 to 55.6 in Feb 2017.
However, the result disappointing, as the UK Manufacturing PMI registered a decline from 55.9 to 54.6 in Feb 2017. The report highlighted that “Output and new orders rise solidly, albeit at slower rates. Price inflationary pressures remain elevated. The PMI was firmly above its long-run average of 51.6 and nonetheless signalled expansion for the seventh successive month”. Earlier today, the British Retail Consortium (BRC) Shop Price Index released for Feb 2017 (YoY) posted a decline of 1%.
Overall, the outcome failed to impress the British Pound buyers, which might push the GBP/USD pair back towards 1.2350.
GBP/USD Technical Analysis
The British Pound struggled a lot lately and moved below the 1.2400 support area against the US Dollar. During the downside move, the GBP/USD pair also broke the 100 simple moving average, and a connecting bullish trend line with support at 1.2450 on the 4-hours chart.
At the moment, the pair is attempting a recovery from the 1.2350 low, but likely to face sellers near the 23.6% Fib retracement level of the last decline from the 1.2569 high to 1.2349 low.
However, the most important resistance is near a connecting bearish trend line at 1.2430 on the same chart. It also coincides with the 38.2% Fib retracement level of the last decline from the 1.2569 high to 1.2349 low. So, overall, the GBP/USD pair remains under trouble, and any rallies towards 1.2400 might face a lot of hurdles in the near term.Tags: British Pound, GBP/USD Technical Analysis, UK Manufacturing PMI, US Dollar